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Bureau of Mines Information Circular/1987 







Foreign Direct Investment in the 
U.S. Minerals Industry 

By Louis J. Sousa, Elizabeth H. Yaremchuk, and Annette P. Graham 



(^ 




UNITED STATES DEPARTMENT OF THE INTERIOR 



Information Circular 9131 



Foreign Direct Investment in the 
U.S. Minerals Industry 

By Louis J. Sousa, Elizabeth H. Yaremchuk, and Annette P. Graham 




UNITED STATES DEPARTMENT OF THE INTERIOR 
Donald Paul Hodel, Secretary 

BUREAU OF MINES 
Robert C. Horton, Director 



Wf.V3\ 



Library of Congress Cataloging-in-Publication Data 



Sousa, Louis J. 

Foreign direct investment in the U.S. minerals industry. 



(Information circular ' United States Department of the Interior. Bureau of 
Mines ; 9131) 

Bibliography: p. 8 

Supt. of Docs, no.: I 28.27: 

1. Mineral industries— United States. 2. Investments. Foreign— United 
States. I. Yaremchuk, Elizabeth H. II. Graham, Annette P. m. Title.IV. Series: In- 
formation circular (United States. Bureau of Mines* ; 9131. 



TN295.U4 — 4HD9506.U62] 622 s [332.673 0973] 86-600410 



CONTENTS 



in 



Page 

Abstract 1 

Introduction 2 

Acknowledgments 2 

Principal findings 2 

Aggregate measures of foreign investment in 

the U.S. minerals industry 2 

Foreign investment in the U.S. minerals 

industry at the two-digit SIC level 3 

Foreign investment in the U.S. minerals 

industry at the four-digit SIC level 4 

Foreign investment in the U.S. minerals 

industry by domicile country 5 

Behind the growth in foreign investment in the 

U.S. minerals industry 5 



Page 

The return of expatriate capital 5 

Domestic minerals companies and assets for sale 5 

Foreign companies buy into the U.S. market ... 6 

Few hostile foreign acquisitions 6 

Current policy and issues 7 

Current policy 7 

Issues 7 

Bibliography 8 

Appendix A.— Principal supporting statistical 

tables 9 

Appendix B.— Data sources and qualifications .... 23 

Appendix C— Glossary 24 



TABLES 



Page 

1. Summary of selected data on the growth of foreign investment in U.S. industries 2 

2. Intensity of foreign investment in the U.S. minerals and other industries: employment as an indicator . . 3 

3. Selected data on foreign investment in the U.S. minerals industry, 1982 3 

4. Proportion of U.S. capacity held by foreign investors in selected U.S. mineral and metal commodity 

industries 4 

5. Foreign investment in the U.S. minerals industry, by domicile country, 1984 5 

6. Federal land mining leases and permits granted to U.S. affiliate firms 7 

A-l. Selected data on foreign investment in all U.S. industries and the U.S. minerals industry 9 

A-2. Foreign investment in the U.S. minerals industry, by ultimate beneficial owner, 1985 12 

A-3. Foreign investment in U.S. steei capacity, 1985 16 

A-4. Foreign investment in U.S. tonnage ferroalloys capacity, 1985 17 

A-5. Foreign investment in U.S. primary aluminum smelting capacity, 1985 17 

A-6. Foreign investment in U.S. copper mining capacity, 1985 17 

A-7. Foreign investment in U.S. lead mining capacity, 1985 18 

A-8. Foreign investment in U.S. zinc mining capacity, 1985 18 

A-9. Foreign investment in U.S. gold mining capacity, 1985 18 

A-10. Foreign investment in U.S. silver mining capacity, 1985 19 

A-ll. Foreign investment in U.S. cement capacity, 1985 19 

A-12. Foreign investment in the U.S. minerals industry— chronological listing of major acquisitions since 

1980 20 

A-13. Selected joint ventures in domestic mineral projects that include foreign partners 22 



UNIT OF MEASURE ABBREVIATIONS USED IN THIS REPORT 



mt 


metric ton 


MW 


megawatt 


pet 


percent 



St 


short ton 


tr oz 


troy ounce 


yr 


year 



FOREIGN DIRECT INVESTMENT IN THE U.S. MINERALS INDUSTRY 

By Louis J. Sousa, 1 Elizabeth H. Yaremchuk, 2 and Annette P. Graham 1 



ABSTRACT 

This Bureau of Mines report examines aggregate trends in foreign direct invest- 
ment in the U.S. mining and mineral processing industries between 1977 and 1984, 
and provides an analysis of foreign investment in several major mineral commodity 
industries. 

In 1984, 11.1 pet of total employment in the U.S. minerals industry was at firms 
that were U.S. affiliates of foreign firms. In 1985, the proportion of U.S. capacity held 
by foreign investors in nine major mineral commodity industries was as follows: steel, 
5 pet; silver, 16 pet; lead, 18 pet; aluminum, 25 pet; zinc, 26 pet ; copper, 30 pet; cement, 
32 pet; gold, 44 pet; and ferroalloys, 56 pct^Almost 90 pet of the total foreign invest- 
ment in the U.S. minerals industry was accounted for by eight countries— Canada, the 
United Kingdom, France, Federal Republic of Germany, Switzerland, Japan, Australia, 
and the Republic of South Africa. The most fundamental reason behind the growth in 
foreign investment in the U.S. minerals industry has been that an increasing propor- 
tion of U.S. mineral firms and assets have been for sale, while foreign mineral com- 
panies have been the ones most willing and able to purchase these firms and/or their 
assets. While the growth in foreign ownership in the minerals industry has not been 
without controversy, it has helped save jobs, reduce the minerals trade deficit, and— 
from the national defense perspective— maintain the Nation's overall mineral and metal 
self-sufficiency at reasonably high levels. In the absence of domestic buyers, foreign 
investors have helped to maintain a viable domestic minerals industry. 



'Economist, Division of Minerals Policy and Analysis. 
Economist, Division of Minerals Availability. 
Bureau of Mines, Washington, DC. 



INTRODUCTION 



This Bureau of Mines study examines aggregate trends 
in foreign direct investment 3 in the U.S. mining and mineral 
processing industries between 1977 and 1984, provides an 
analysis of foreign investment in several major mineral 
commodity industries, and presents data indicating the 
domicile country of foreign investors in U.S. mineral assets. 
The study also traces foreign investment in U.S. mineral 
assets back to the ultimate beneficial owner using publicly 
available data. 

The primary objective of the study was to provide data 
that depict trends in and the current status of foreign in- 
vestment in the domestic mineral industries; beyond a 
limited discussion, it did not, however, examine in detail 
the factors that have contributed to the growing role of 
foreign investors in these industries. Nor did it evaluate 
in depth the potential advantages or liabilities of this activ- 
ity. In other words, the study was designed primarily to pro- 



vide many of the previously unassembled facts needed to 
help focus and clarify policy dialogue on the foreign invest- 
ment issue. 

Two major sources of information were used in the 
preparation of this report. A large and valuable data base 
developed by the Commerce Department's Bureau of 
Economic Analysis was used to help measure aggregate 
trends in foreign investment in the minerals industry. Data 
for the more detailed examination of foreign investment in 
specific mineral commodity industries, on the other hand, 
were developed through an extensive search of industry and 
trade literature, various corporate directories, and company 
annual reports. The tabulations developed from the 
literature search were reviewed and supplemented with ad- 
ditional data provided by Bureau of Mines commodity 
specialists. 



ACKNOWLEDGMENTS 



The authors wish to extend their appreciation to several 
Bureau of Mines employees who contributed much valuable 
assistance to the preparation of this report including Rodney 
Rosenkranz, physical scientist, Minerals Availability Field 
Office, Denver, CO (base metal capacity estimates), Jerry 
Krim, economist, Division of Minerals Policy and Analysis, 
Washington, DC (general research direction), and the com- 
modity specialists of the Bureau of Mines, including 
Frederick Schottman (iron and steel) and Raymond Brown 
(ferroalloys), both physical scientists in the Division of Fer- 
rous Metals, Washington, DC; Frank McCawley (alumi- 
num), Janice Jolly and Daniel Edelstein (copper), William 



Woodbury (lead), James Jolly (zinc), John Lucas (gold), and 
Robert Reese (silver), all physical scientists in the Division 
of Nonferrous Metals, Washington, DC; and Wilton Johnson 
(cement), mineral specialist in the Division of Industrial 
Minerals, Washington, DC. The authors would also like to 
thank Ned Howenstine and R. David Belli, international 
economists in the International Investment Division, 
Bureau of Economic Analysis, U.S. Department of Com- 
merce, Washington, DC, for supplying much of the 
statistical data used in the report, and George Watson, 
president of the Ferroalloy Association, Washington, DC. 
for his assistance in coverage of the ferroalloy industry. 



PRINCIPAL FINDINGS 



AGGREGATE MEASURES OF FOREIGN 
INVESTMENT IN THE U.S. MINERALS INDUSTRY 

As noted in table 1, between 1977 and 1984 the number 
of non-bank U.S. affiliates" of foreign investors in the 
economy as a whole more than doubled (from 4,046 to 9,630) 
as did employment at these affiliates (from 1.2 million 
workers to 2.7 million). During this same time period, the 
total value of assets at all U.S. affiliates in the economy 
rose from $143 billion to $387 billion (1977 constant dollars). 

Foreign investment in the domestic minerals industry 
also grew substantially during the 1977-84 time period as 
the number of U.S. affiliates in the minerals industry in- 
creased by 65 pet (from 125 to 206) between 1977 and 1984. 



3 Foreign direct investment in the United States is defined in this report 
as ownership or control, directly or indirectly, by a foreign person or entity 
of 10 pet or more of the voting securities of a U.S. business enterprise. The 
reader is referred to appendix C for the definition of several similar technical 
terms used in this report. 

4 A U.S affiliate is a business enterprise in which at least 10 pet 
or more of its voting securities are directly or indirectly owned or 
controlled by a foreign person or entity. 



During the same period, employment at all U.S. affiliate 
mineral operations in this country increased by 61 pet. The 
rate of increase in foreign investment in U.S. mineral assets 
was slightly higher in the metals industries than in the non- 
metallic groups. 

Table 1.— Summary of selected data on the growth of 
foreign investment in U.S. industries 



All 



Metal min- 



Nonmetallics 



Total. 



■ndustnes' ( Jg;!J«S- (SIC 14. 32) «£g* 



Affiliates: 

1977 

1984 

1977-84 change 
Total assets 2 : 

1977 

1984 

1977-84 change 
Employment: 

1977 

1984 

1977-84 change 



10 6 $ 

106$ 

pet 

106$ 

10*5 

pet 

.103 
10 3 
pet 



4.046 

9.630 

138 

143.488 

386.768 

170 

1.219 

2.715 

123 



68 

114 

68 

6.166 

12.694 

106 

69 

107 

55 



57 
92 
61 

3.692 

6.082 

65 

42 
71 
69 



125 

206 

65 

9.858 

18.776 

90 

111 

179 

61 



'Except banking (SIC 60). 
2 1977 constant dollars. 

Source: U.S. Department of Commerce. Bureau of Economic Analysis. See 
table A-1 for specific publications. 



Table 2.— Intensity of foreign investment in the U.S. 
minerals and other industries: employment as an indicator 

All Mining and Minerals 

industries 1 manufacturing 2 industry 3 

Total employment, 10 3 : 

1977 90,660 20,495 2,057 

1984 103,331 "19,454 1,614 

Employment at U.S. affiliate 
firms: 

1977 10 3 . . 1,219 764 111 

1984 10 3 .. 2,715 "1,430 179 

Share of 1977 total pet.. 1.3 3.7 5.4 

Share of 1984 total pet.. 2.6 "7.4 11.1 

Except banking (SIC 60). 

2 SIC groups 10 through 14 and 20 through 39. 

3 SIC groups 10, 14, 32, and 33. 

"1983. 

Sources: Economic Report of the President, Feb. 1985; Supplement to 
Employment and Earnings, July 1984, Bureau of Labor Statistics, U.S. Depart- 
ment of Labor; and U.S. Department of Commerce, Bureau of Economic 
Analysis. 



Perhaps a more useful way of evaluating the growth in 
foreign investment is to analyze growth in the "intensity" 
of foreign investment, i.e., changes in the proportion of total 
industry assets held by foreign investors. Unfortunately, 
insufficient and/or inadequate data on total industry assets 
prevented the development of such a measure. Thus, as an 
alternative indicator of relative differences in the intensity 
of foreign investment, employment data were used. 

For example and as noted in table 2, the 179,000 
minerals industry workers employed at U.S. affiliate com- 
panies in 1984 accounted for 11.1 pet of total employment 
in this sector of the economy. In comparison, for the min- 
ing and manufacturing sectors of the economy as a whole, 
7.4 pet of all workers were employed at U.S. affiliate firms 
in 1983, while for the total economy, 2.6 pet of the entire 
civilian employed workforce worked at U.S. affiliate firms 
in 1984. Thus, using employment as an indicator, foreign 
investment seemed more prevalent in the minerals industry 
than in most other industries as about one worker in nine 
in the minerals sector was employed at a U.S. affiliate firm 
in 1984. It is of further interest to note that at each of these 
three levels of aggregation— the minerals industry, the 
goods producing sectors, and the economy as a whole— the 
intensity of foreign investment (as reflected by employment) 
approximately doubled between 1977 and 1984. 



FOREIGN INVESTMENT IN THE U.S. MINERALS 
INDUSTRY AT THE TWO-DIGIT SIC LEVEL 

Disaggregating the minerals industry as a whole into 
its major component industries revealed a rather broad 
divergence in the intensity of foreign investment 5 among 
these industries. While manufacturing segments within the 
minerals sector, i.e., SIC groups 32 and 33, accounted for 
the majority of employees and assets at U.S. affilate firms, 
the intensity of foreign investment was highest in the min- 
ing (i.e., SIC 10 and 14) segments of the sector. 

In metal mining, U.S. affiliate firms accounted for 26 
pet of the industry's total property, plant, and equipment 
(PPE) and 21 pet of the industry's employment in 1982. 6 
Within the iron ore industry, the degree of foreign involve- 
ment was even higher; 33 pet of all PPE and employees in 
the iron ore industry were employed at U.S. affiliate firms. 

In the primary metals industries, foreign investors 
showed an apparent preference for nonferrous metals as op- 
posed to steel companies. 7 For example, while only 5 pet 
of steel industry PPE belonged to U.S. affiliate firms, the 
corresponding figure in nonferrous metals was 17 pet. For 
the metals industries as a whole, U.S. affiliate firms ac- 
counted for 9 pet of the industries' PPE. Employment pat- 
terns at U.S. affiliate metals firms in the United States 
closely followed those for PPE. 

In nonmetallic mineral mining, 27 pet of the industry's 
PPE was held by U.S. affiliate firms while only 7 pet of the 
industry's employment was at U.S. affiliate firms. Simi- 
larly, in the manufacturing segment of this industry (i.e., 
SIC 32— stone, clay, and glass products), 15 pet of all PPE 
assets were held by U.S. affiliate firms while only 8 pet of 



5 In contrast to higher levels of aggregation, it was possible to 
develop asset-based comparisons of foreign investment intensity 
at the two-digit level of industry classification by using Bureau 
of the Census data on property, plant, and equipment. In the capital- 
and equipment-intensive minerals industry, such assets typically 
account for at least two-thirds of total assets. 

6 1982 was used in this table because it was the latest year in 
which comprehensive data on PPE in the minerals industry was 
available. 

'Through 1983. Over the last couple of years, however, foreign 
investors have shown an increased interest in U.S. steel facilities, 
particularly fabrication plants. 



Table 3.— Selected data on foreign investment in the U.S. minerals industry, 1982 

PPE, 10 6 $ PPE at U.S. Employment Employment 

Industry segment affiliates, at U.S. 

At U.S. T _ taM pet of At U.S. Tnta i affiliates, 
affiliates total affiliates pet of total 

Metal mining: 

Iron ore 1 ,433 4,354 33 3,950 1 1 ,900 33 

Other 2,435 10,335 24 11,210 61,900 19 

Total 

Primary metals: 

Ferrous 

Nonferrous 

Total 6,735 75,165 9 69,800 922,000 

Nonmetallic minerals, except fuels 3,958 14,600 27 7,275 111,100 7 

Stone, clay, and glass products 4,467 29,225 15 46,621 577,800 8 

Grand total 2 19,028 133,679 14 138,856 1,684,700 8 

PPE Gross book value of property, plant, and equipment, end of year. 

'Some data are based on sample estimates. 

2 Data may not add to totals shown owing to independent rounding. 

Sources: 1982 Census of Manufacturing (various issues) and 1982 Census of the Mineral Industries (various issues), Bureau of the Census, U.S. Department 
of Commerce; Bureau of Economic Analysis, U.S. Department of Commerce; and Supplement to Employment and Earnings, 1909-1978, Revised Establish- 
ment Data, Bureau of Labor Statistics, U.S. Department of Labor. 



3,868 


14,689 


26 


15,160 


73,800 


21 


2,511 
4,223 


50,155 
25,010 


5 
17 


21 ,732 
48,068 


553,000 
369,000 


4 
13 



the industry's employees worked for U.S. affiliate 
companies. 

It should be noted that for all the mineral industry 
groups analyzed, asset-based measures of foreign invest- 
ment intensity were somewhat higher than those based on 
employment data. This would seem to indicate that foreign 
investment has generally been concentrated in the more 
capital intensive (and presumably larger) firms. If this situa- 
tion prevails throughout the economy, the employment- 
based measures of foreign investment for the goods sectors 
and the economy as a whole (cited previously) probably 
understate somewhat the actual proportion of U.S. in- 
dustrial assets owned by foreigners. 



FOREIGN INVESTMENT IN THE U.S. MINERALS 
INDUSTRY AT THE FOUR-DIGIT SIC LEVEL 

Because of the lack of sufficient industry-specific data 
in the Commerce Department's foreign investment data 
base, a different approach was required in order to examine 
in greater detail the degree of foreign investment in in- 
dividual commodity industries. Hence, using a "bottom up" 
approach, data were developed from numerous published 
sources such as trade literature, company annual reports, 
and various corporate directories. From this data, foreign 
investment in individual mineral producing companies was 
ascertained. 8 This data, in turn, provided the basis for deter- 
mining the proportion of U.S. capacity held by foreign in- 
vestors in specific mineral commodity industries (i.e., at the 
four-digit SIC level) in 1985. Using this approach revealed 
that, in the nine major mineral and metal commodity in- 
dustries analyzed, foreign investment intensity ranged from 
a low of 5 pet in the steel industry to a high of 56 pet in 
the ferroalloys industry, as summarized in table 4. 

Foreign investors own at least 10 pet of the stock of com- 
panies possessing about 13.4 million st steel capacity. Pro- 
rating this capacity based on the number of shares of voting 
stock held yielded an equivalent foreign investor-held steel 
capacity of 7.1 million st, only about 5 pet of the U.S. total. 
Most foreign investment in U.S. steel companies has been 
in non-integrated minimill and specialty steel producers, 
though Japan's Nippon Kokan K.K. has a 50-pct interest 
in the 4.9 million st integrated capacity held by National 
Steel. While foreign firms have largely avoided investing 
heavily in the hot metal end of the steel business, recently 
they seem to have been increasing their stake in steel 
fabrication assets (though no data have been assembled here 
in order to quantify this development). 

Of those commodities studied, foreign investment inten- 
sity was highest in the tonnage ferroalloy industry (i.e., 
chromium, manganese, and silicon ferroalloys and metals). 
In this industry, foreign investors hold the equivalent of 
56 pet of the total active capacity in this country. Moreover, 
it should be noted that total capacity in the ferroalloy in- 
dustry has declined sharply over the past several years as 
imported ferroalloys have captured an ever increasing share 
of the domestic market. Hence, the collective role of U.S. 
owned firms as a source of supply of these strategic 
materials has been reduced considerably. 

The bottom up foreign investment analysis further con- 
firmed that foreign investment in the major U.S. nonfer- 
rous metal industries has been more extensive than in the 
steel industry. For example, in the U.S. aluminum industry 
foreign investors hold the equivalent of 1.34 million st of 



"See, for example, tables A-2 through A-ll. 



Table 4.— Proportion of U.S. capacity held by foreign 

investors in selected U.S. mineral and metal commodity 

industries, 1985, 1 percent 

Industry 

Ferrous metals: 

Steel 5 

Ferroalloys 56 

Nonferrous metals: 

Aluminum smelting 25 

Copper mining 30 

Gold mining 44 

Lead mining 18 

Silver mining 16 

Zinc mining 26 

Industrial minerals: Cement 32 

'Prorated based on percent of voting securities held in U.S. operating firms 
by foreign investors. 

primary smelting capacity— a quarter of the country's total. 
About one-third of foreign-held aluminum capacity was ac- 
quired within the past 2 yr by Nippon Kokan, Alcan (of 
Canada), and CRA (of Australia). As in steel, the purchase 
of fabrication and marketing assets is believed to have been 
an important factor in these acquisitions. 

Of the four tonnage nonferrous metal industries ana- 
lyzed, foreign investment is highest in copper— 30 pet of U.S. 
copper mining capacity is foreign held. Because of the ex- 
tremely difficult times that they have faced over the last 
several years, domestic copper firms have often sought 
foreign business partners as a means of sharing risk and 
gaining access to much needed capital. Hence, most of the 
major companies in the domestic industry including Ken- 
necott, Phelps Dodge, Newmont, ASARCO, and Inspiration 
have come under some degree of foreign control as overseas 
investors have acquired interests in these firms. 

Foreign investment in lead mining amounts to 18 pet 
of U.S. capacity, somewhat lower than the degree of foreign 
investment in the other tonnage nonferrous metal in- 
dustries. This is primarily because foreign investors have 
not acquired a significant interest in the largest U.S. pro- 
ducer, Fluor/St. Joe. In zinc, foreign investors hold the 
equivalent of 26 pet of U.S. mining capacity. Slightly over 
half of all foreign investment in U.S. zinc mining capacity 
is accounted for by Socie'te Ge'nerale de Belgique's owner- 
ship of the Jersey Miniere Zinc Co., operator of the large 
Elmwood-Gordonsville Mine. 

Overseas investment in U.S. silver capacity apparently 
is not quite as extensive as in most of the other mineral 
commodity industries analyzed— foreign investors hold the 
equivalent of 16 pet of total domestic mining capacity in 
this metal. In the case of gold, on the other hand, a recent 
surge in interest in gold properties in the United States by 
a number of small and largely Canadian companies has 
sharply increased the role of foreign firms in this domestic 
industry. At the end of 1985, at least 44 pet of U.S. gold 
mining capacity was owned by U.S. affiliates of foreign 
firms. Moreover, in contrast to the other commodities 
analyzed, it is possible that a lack of complete information 
on ownership of U.S. gold (and possibly silver^ properties 
may have resulted in the understatement of the degree of 
foreign investment in U.S. capacity to produce these 
precious metals. 

Finally, in cement, the only industrial mineral industry 
analyzed, a wave of foreign acquisitions in recent years has 
driven the foreign-owned share of U.S. capacity to 32 pet. 
Unlike the metals, where overseas investors seem to prefer 
a partnership or minority interest role, in cement the 
available information seems to indicate that foreign in- 
vestors find the wholly owned subsidiary route more 
attractive. 



FOREIGN INVESTMENT IN THE U.S. MINERALS 
INDUSTRY BY DOMICILE COUNTRY 

While the Bureau of Economic Analysis (BEA) data base 
is useful in analyzing aggregate measures of foreign invest- 
ment, it is considerably less helpful in determining the 
domicile country 9 of ownership of U.S. minerals industry 
assets. This is mainly due to disclosure problems; that is, 
in many instances detailed data could not be published 
because it would reveal proprietary information about in- 
dividual companies. Table 5 contains the BEA data on 
foreign investment in the U.S. minerals industry by 
domicile country in 1984 (the latest year available) and, as 
noted, much of the information had to be withheld. 

One interesting point that the BEA data do not confirm 
is that over 73 pet of the total foreign investment in the 
U.S. minerals industry is accounted for by Canada, four 
West European countries— the United Kingdom, France, 
Federal Republic of Germany, and Switzerland— and Japan. 
The data further indicate that investors in Australia and 
the Republic of South Africa account for an additional 15 
pet of total foreign investment in the minerals sector. Thus, 
it is estimated that these eight countries alone account for 
almost 90 pet of all foreign investment in the minerals in- 
dustry in the United States. 



Table 5.— Foreign investment in the U.S. minerals industry, 
by domicile country, 1984, million dollars 

Nonmetallic Stone, 

Domicile country' Me,al minerals, Primary clay, and Tt| 
' mining except metals glass 
fuels products 

Canada 1,651 W 2,849 W 6,167 

Latin America __5 2 W W 

France W~ 772 2,303 W 

Germany, Fed. Rep. 

of W W 698 443 1 ,735 

Netherlands 13 17 30 

Switzerland W W 403 1 ,451 

United Kingdom W W 2,521 5,116 

Other Europe W W W 350 W 

Total Europe 583 908 6,196 6,037 13,724 

Japan W 3,623 39 W 

Australia 2 and 

Republic of South 

Africa W W W 221 4,296 

Middle East W W 8 528 

Other __5 2 73 W W 

Grand total 3,903 1,365 15,671 8,013 28,952 

W Withheld to avoid disclosing proprietary data. 

location of the- home office of the ultimate beneficial owner. 

includes New Zealand. 

Source: Bureau of Economic Analysis, U.S. Department of Commerce. 



BEHIND THE GROWTH IN FOREIGN INVESTMENT IN THE U.S. MINERALS INDUSTRY 



Because of the magnitude of foreign investment in the 
U.S. minerals industry as well as the fundamental role that 
mining and metals companies have traditionally occupied 
in supporting the Nation's industrial base and national 
defense, the growth in foreign investment in these in- 
dustries that has occurred over the last decade has become 
a subject of increasing public policy debate. Reasons 
sometimes cited in attempts to explain the underlying 
causes of the growth in foreign ownership and investment 
in the minerals sector have been numerous and are briefly 
discussed in this section. 



THE RETURN OF EXPATRIATE CAPITAL 

At the macroeconomic level, the expanding foreign in- 
vestment in U.S. firms as a whole (including minerals com- 
panies) has been a natural outgrowth of changes in inter- 
national trade between the United States and other coun- 
tries. The recent large trade deficits have created substan- 
tial foreign ownership of U.S. dollars. For a number of 
reasons, much of this capital has been invested in the 
United States through the purchase of both debt and equity 
holdings in U.S. companies. 



DOMESTIC MINERALS COMPANIES 
AND ASSETS FOR SALE 

Perhaps the most fundamental reason behind the 
growth in foreign investment in the U.S. mineral industries 
(particularly since 1981) has been that an increasing pro- 



defined as the country in which the home office of the ultimate 
beneficial owner is located. 



portion of U.S. mineral firms and assets have been for sale 
while foreign mineral companies have been the ones most 
willing and able to purchase these firms and/or their assets. 

Largely because of the numerous and severe competitive 
difficulties that they have faced over the last several years, 
domestic commodity mineral producers have experienced 
reduced profits (or even losses) and growing debt. In some 
instances they have surrendered their autonomy as in- 
dependent companies in return for continued survival as 
an affiliate (or joint venture partner) of another, more pros- 
perous firm, regardless of its nationality. 

When U.S. mineral companies have not been acquired 
outright, they have often sought to divest themselves of 
selected mineral or metal assets either to (1) rid themselves 
of high-cost operations, (2) reduce their debt, or (3) reposi- 
tion themselves by redeploying their capital— often into 
more sophisticated, specialized, highly value-added product 
lines. In selling their assets, U.S. mineral companies have 
often noted a shortage of sufficiently interested and/or able 
domestic buyers. 

A few foreign acquisitions occurred after Federal agen- 
cies had determined that certain proposed or completed 
mergers violated antitrust laws. In one recent example of 
this type of activity, Kemira Oy of Finland bought the 
titanium dioxide plants of American Cyanamid Co. after 
the purchase of that company's plants by NL Industries had 
been opposed by the Federal Trade Commission. In another 
instance, Nippon Kokan of Japan bought 50 pet of National 
Steel after the Justice Department had disallowed a bid by 
U.S. Steel. 

In effect, the recent sale of U.S. minerals assets to 
foreign owners has been a symptom of an apparent in- 
dustrial megatrend: the movement of U.S. capital away 
from commodity industries and toward those with more 
highly specialized products. 



FOREIGN COMPANIES BUY INTO THE U.S.MARKET 

Many foreign minerals firms have fared somewhat 
better than their U.S. counterparts over the last several 
years, and have emerged from the period with stronger 
balance sheets and seemingly less disillusionment with the 
commodity minerals and metals business. Indeed, like 
foreign firms in other industries, they have been interested 
in further expanding their world market shares by purchas- 
ing U.S. mineral companies or assets as they have come 
up for sale. And these foreign companies often have been 
in a good position to do so. 

Despite recent slowing in the growth in demand for 
many minerals in the United States, the U.S. economy is 
still the largest in the world. Hence, in the aggregate, the 
U.S. market is still the world's largest consumer of many 
commodity minerals and metals. Even during recessionary 
periods the U.S. proportional share of world consumption 
of most commodities remains relatively large. Foreign com- 
panies desiring to expand their overseas sales consider in- 
vesting in the United States because of the sheer magnitude 
of this country's demand for minerals. There are several 
reasons why the purchase of a U.S. firm is an expeditious 
method of improving market share in this— the world's 
largest— economy . 

For example, both Alcan (Canada) and Comalco 
(Australia) viewed the acquisition of aluminum fabrication 
assets in the United States as a means of securing an im- 
portant outlet for aluminum ingot produced at their own 
domestic smelters. In so doing, these companies were, in 
effect, buying directly into the critically important 
marketing end of the aluminum business, and thus they 
were able to acquire the channels through which to sell 
aluminum produced abroad in a highly competitive 
environment. 

Furthermore, by acquiring a U.S. affiliate, foreign firms 
are able to avoid certain tariffs on items shipped from their 
facilities abroad (exported) to these U.S. affiliates for fur- 
ther processing. In addition, by acquiring capacity in this 
country, mineral and metal producers come to be viewed 
as a more stable supplier by manufacturing firms that pur- 
chase these materials. 

The magnitude of U.S. mineral resource potential has 
been another reason that foreign firms (especially relatively 
resource-deficient Japanese and European companies) have 
invested in the United States. Particularly in the late 1960's 
and 1970's, U.S. mineral companies were attractive to 
foreign investors because they were viewed in a manner 
similar to that of oil companies. They were perceived to 
possess good future earnings potential because of the 
depleting nature of mineral resources. Although this view 
is not as prevalent today, the purchase of in situ U.S. 
mineral assets often has been viewed as a sound long-term 
investment. 

Foreign firms also have invested in U.S. companies to 
help assure themselves of a continued presence in the large 
U.S. market during a period of uncertainty marked by grow- 



ing protectionist sentiment. Japanese firms, in particular, 
seem to have responded to this concern. The ability of 
Japanese companies to provide products to U.S. consumers 
at competitive prices has eroded the U.S. producers' market 
share in numerous products and has contributed to the 
growing trade deficit with Japan. As a result, many com- 
peting U.S. producers have sought trade restrictions on 
Japanese products, and the Japanese are concerned that the 
tide of U.S. protectionism could spread and restrict their 
presence in the U.S. market. 

Finally, the stable political environment of the United 
States has offered another strong attraction for foreign 
capital. While costly U.S. Government regulations may 
deter foreign investment in the United States, more often 
such regulations have been viewed with less concern than 
the potential whim of government officials serving as board 
members in a joint government-private sector enterprise, 
as might be the case in many other countries. In addition, 
the U.S. economy is one of the strongest in the world and, 
in contrast to numerous other Western economies, the U.S. 
economy seems much more securely embarked on a new 
secular path of growth. 

FEW HOSTILE FOREIGN ACQUISITIONS 

Despite the large number of foreign acquisitions of U.S. 
mineral firms, there have been only a few reported hostile 
takeover attempts by overseas investors. In the only known 
major hostile foreign takeover action to be successfully ex- 
ecuted, the management of Gulf Resources and Chemicals 
Co. (the major producer of lithium in the United States) was 
challenged by the British financier Alan E. Clore, a holder 
of 25 pet of Gulf Resources stock. He assumed control of the 
company after a proxy vote in 1981. 10 

St. Joe Minerals Co., a major producer of lead and zinc, 
was the object of another hostile foreign takeover attempt 
in 1980 by the Seagrams Co. of Canada. St. Joe's major ob- 
jection to the Seagrams offer was that the Canadian firm 
was not involved in the minerals business and, therefore, 
would not be sufficiently sensitive to the company's needs. 
Eventually, St. Joe was acquired by the Fluor Corp., a U.S. 
company. ASARCO has also been subjected to a hostile 
foreign takeover campaign; thus far, however, ASARCO has 
managed to resist the unwanted acquisition through the 
repurchase of stock. 

Aside from these few known instances, U.S. mineral 
companies have generally changed hands with the mutual 
consent of both parties. Nonetheless, as in any perceived 
hostile takeover attempt— domestic or foreign— executives 
and others in the target firm may feel that they have much 
to lose by such an action. Hence, they will often go to great 
lengths to abort the unwanted takeover attempt. It is from 
such actions that much of the debate over the foreign owner- 
ship issue probably originates. 



10 Clore subsequently sold most of his interests in Gulf to FMC 
Corp. in 1985. 



CURRENT POLICY AND ISSUES 



The growth of foreign investment in domestic mineral 
and other firms has stimulated a great deal of interest in 
existing U.S. policy toward foreign investment and raised 
a number of issues of concern to be considered as future 
policy toward foreign investment evolves. 



CURRENT POLICY 

For the most part, the United States does not impose 
special restrictions on foreign investment here. Rather, this 
country generally attempts to promote an investment 
climate open to anyone wishing to conduct business in the 
United States. Therefore, U.S. subsidiaries of foreign com- 
panies are incorporated under U.S. laws, and are generally 
granted the same privileges extended to and assume the 
same responsibilities of any U.S. corporation. 

The Mining Law of 1872 permits ownership of leases 
and claims on federally administered lands by all U.S. 
citizens and corporations, regardless of the nationality of 
the stockholders of the company— with one exception. Under 
the Minerals Leasing Act of 1920, if the majority of the 
stockholders of U.S. corporations are of a country that does 
not allow equal access to U.S. interests in the foreign coun- 
try they represent (i.e., if reciprocal investment agreements 
do not exist), then the foreign-held U.S. subsidiary may be 
denied access to mineral rights on federally administered 
lands. In practice, however, only one country has been 
denied access to mineral leases and mining claims because 
it was found not to meet the reciprocity criterion. Moreover, 
that finding was reversed in a State court within a year 
of the lower court's decision. Table 6 provides a partial 



Table 6.— Federal land mining leases and permits 
granted to U.S. affiliate firms 



Lessee and State 



Leases and 
permits 



Commodity 



ASARCO, Incorporated: 
Arizona 



1 lease 



Missouri 

Do 

ASARCO, U.S. Borax: Idaho . . 
Cominco American: 

Missouri 

Do 

Montana 

Cominco American, Dresser 
Industries: 

Missouri 

Do 

Foote Mineral Co.: 

Nevada 

Do 

Do 

Hanna Mining Co.: Minnesota . 
Inspiration: Wisconsin 



1 lease . . . 
14 permits 
1 lease . . . 



11 permits 
16 leases . 
1 lease . . . 



6 leases . 

2 permits 

11 leases 
11 leases 
4 leases . 

3 permits 
1 permit . 



International Nickel Co.: 

Minnesota 

Do 

Noranda Exploration: 

Missouri 

New Mexico 

Do 

Noranda Lakeshore Mines Inc. 

Arizona 

Texasgulf Western: Missouri . . 
Texasgulf Inc.: 

Utah 

Wyoming 

Do 



2 leases . 
1 permit . 

4 permits 
9 leases . 
6 permits 



1 lease . . . 
16 permits 



4 leases 
1 lease . 
4 leases 



Copper, molybdenum, 

silver. 
Lead, zinc, copper. 
Lead, zinc. 
Copper, gold. 

Lead, zinc. 
Phosphate. 
Do. 



Lead, zinc, copper. 
Nickel, cobalt. 

Sodium. 
Potash. 
Lithium. 
Copper, nickel. 
Copper, zinc, lead, 
gold. 

Copper, nickel. 
Do. 

Lead, zinc. 
Potash. 
Do. 

Copper. 
Lead, zinc. 

Potash. 
Sodium. 
Do. 



listing of Federal land mining leases and permits granted 
to U.S. affiliate firms. 

The reciprocity laws do not exclude foreigners from the 
exploration, purchase, or development of land that is not 
owned or administered by the Federal Government, 
regardless of whether the investment is through a U.S. sub- 
sidiary or directly by a foreign operation. All developers of 
minerals, regardless of the nationality of the stockholders, 
must meet all requirements established to meet health and 
safety codes, air quality standards and any other similar 
legislation, however. They are also subject to State, local, 
and Federal taxes. 

While U.S. law generally does not distinguish between 
U.S. and foreign investors in this country, the Federal 
Government does monitor foreign investment. The Commit- 
tee on Foreign Investment in the United States reviews in- 
vestments in the United States and determines if they have 
major implications for the national interest, but the com- 
mittee has no legislative authority to disapprove or block 
foreign investments in U.S. companies. 



ISSUES 

Opponents of foreign investment in U.S. mineral assets 
often maintain that foreign investors would be less sensitive 
to the social, economic, political, and national defense needs 
of this country and more prone to act in a manner that 
would not be in the best interests of this country or its 
citizens. Furthermore, with potentially important industrial 
assets under the control of foreign interests, those that 
argue against foreign investment suggest that the ability 
of the United States to influence the behavior of these firms 
would somehow be reduced. For example, those individuals 
claim that foreign investors would be more likely to break 
up, sell, or otherwise dispose of the assets of a U.S. com- 
pany and reduce employment at the firm. Opponents also 
suggest that corporate practices may reflect the priorities 
of a foreign country and not recognize the national secu- 
rity interests of the United States. At the very least, they 
suggest, ownership in U.S. industry should be limited to 
those countries that allow an equivalent amount of owner- 
ship by U.S. investors. 

On the other hand, proponents of foreign investment 
argue that foreign owners can provide essential capital, act 
as a catalyst for growth, introduce new technology and 
management skills, expand employment, and improve pro- 
ductivity. Furthermore, proponents argue, a special policy 
designed to more closely regulate foreign investment in the 
United States would be inconsistent with this country's 
traditional policy of encouraging the free flow of trade and 
investment. Perhaps most important, however, is the fact 
that in the absence of foreign investors or joint venture part- 
ners, many mines, smelters, and other mineral operations 
in this country might well be permanently closed. In other 
words, the growth of foreign investment in the minerals in- 
dustry has helped save jobs, reduce the minerals trade 
deficit, and— from the national defense perspective- 
maintain overall mineral and metal self-sufficiency at 
reasonably high levels. In the absense of domestic buyers, 
proponents maintain, foreign investors have helped to main- 
tain a viable domestic minerals industry. 



Proponents point out that there are adequate measures 
(e.g., export controls) that the Government can impose for 
foreign policy, scarcity, or national security reasons. Also, 
foreign investment in strategically significant domestic in- 
dustries such as the nuclear or defense industries is 
specifically limited. Furthermore, restrictions on foreign in- 
vestment in domestic mineral firms could precipitate 
retaliatory actions against large U.S. investments abroad. 

Many of the strongest proponents for the continuation 
of the existing, largely unrestricted policy toward foreign 



ownership and investment are from within the minerals 
community itself. As recent investment trends have sug- 
gested, restricting foreign ownership could limit the abil- 
ity of stockholders and executives in the minerals industry 
to make the "best deal" possible for any assets that they 
may decide to sell. Within the minerals industry, one's posi- 
tion on the foreign investment policy issue largely depends 
on the answer to the question: "Would this be a friendly 
or a hostile takeover?" 



BIBLIOGRAPHY 



Agnew, A. F. Foreign Takeovers of U.S. Mining Companies. 
Congr. Res. Serv. Internal Memorandum, July 30, 1981, 17 pp.; 
available from Div. of Minerals Policy and Analysis, BuMines, 
Washington, DC. 

Blanton, K. World Market Portfolio Finds Metals Tops in Risk, 
Return. Pension Investment Age, v. 10, No. 21, 1982, p. 10. 

Brown, J. P. Selected Mergers and Acquisitions in the Natural 
Resources Industry, 1981: Case Histories and Financial Profiles. 
Congr. Res. Serv., Report 81-205E, Aug. 21, 1981, 56 pp. 

Bureau of Economic Analysis (Dep. Commerce). Foreign Direct 
Investment in the United States, Apr. 1976, 9 Vols. 

Foreign Direct Investment in the United States, 1980. 

Oct. 1983, 206 pp. 

. Foreign Direct Investment in the United States, Opera- 
tions of U.S. Affiliates, 1977-1980. 1985, 187 pp. 

Business Week. Are Foreign Partners Good for U.S. Companies? 
May 28, 1984, pp. 58-60. 

. How Overseas Investors Are Helping To Reindustrialize 

America. June 4, 1984, pp. 103-104. 

Ellis, J. Foreign Ownership in U.S. Mining Industries. Congr. 
Res. Serv., Internal Memorandum, May 9, 1984, 5 pp.; available 
from Div. of Minerals Policy and Analysis, BuMines, Washington. 
DC. 

Energy and Mineral Resources. Business and International 
Minerals Newswire. V. 10, No. 7, 1982, p. 70! 

Forbes. The 500 Largest Foreign Companies. V. 136, No. 3, 1985, 
pp. 162-176. 

. The 100 Largest Foreign Investments in the United 

States. V. 130, No. 1, 1982, pp. 115-126. 

. The 100 Largest Foreign Investments in the United 

States. V. 134, No. 1, 1984, p. 117-128. 

. The 100 Largest Foreign Investments in the United 

States. V. 136, No. 3, 1985, pp. 180-185. 

General Accounting Office. Changing Ownership Within the U.S. 
Minerals Industry: Possible Causes and Steps Needed To Deter- 
mine the Effects. EMD-82-41, Apr. 1982, 24 pp. 



Haflich, F. Foreign Investment Seen Rising in U.S. Mining Com- 
panies as Mineral Markets Gain. American Metal Market, Sept. 
15, 1983, pp. 2, 8. 

International Trade Administration (Dep. Commerce >. Foreign 
Direct Investment in the United States, 1981 Transactions. Feb. 
1984, 70 pp. 

Kapstein, J., and J. H. Dobrzynski. Anglo-American Tries to Cling 
to the Middle Ground in South Africa. Business Week, Oct. 7, 1985, 
pp. 72-73. 

Little, J. S. The Impact of Acquisitions by Foreigners on the 
Financial Health of U.S. Firms. The New England Economic 
Review, The Federal Reserve Bank of Boston, July /Aug. 1982, 30 

PP- 

Management Review. Foreign Acquisitions of U.S. Firms: Bless- 
ing or Curse? V. 71, Oct. 1982, pp. 61-62. 

Moody's Investors Service, Inc. Moody's Industrial Manual, 1984. 
New York, 2 volumes, 6200 pp. 

. Moody's International News Reports, 1984. New York, 

2 volumes, 3998 pp. 

O'Brien, T. J. Foreign Investment in U.S. Industry. Security 
Management, V. 26, May 1982, pp. 72-73. 

Prast, W. G. Energy and Mining Mergers: Good, Bad, or Indif- 
ferent? Pres. at Soc. Min. Eng. AIME Spring Meeting, Atlanta. GA. 
Mar 6-10, 1983. Soc. Min. Eng. AIME preprint 83-16. 5 pp. 

Shao, M. French Firm Lifts Bid for Texasgulf to Gain Takeover. 
The Wall Street Journal, July 7, 1981, p. 2. 

. Some U.S. Mining Firms Try to Turn Back Sudden Wave 

of Foreign Takeover Offers. The Wall Street Journal. Aug. 19. 1981, 
p. 50. 

U.S. Department of Commerce. Monthly Report on Foreign Direct 
Investment Activity in the United States. July-September, 1983. 
35 pp. 

U.S. Department of the Treasury. Foreign Investment in the 
United States: A Summary of Federal Laws Bearing on Foreign 
Investment in the United States. Sept. 1979. 33 pp. 



APPENDIX A.— PRINCIPAL SUPPORTING STATISTICAL TABLES 



Table A-1.— Selected data on foreign investments 1 in all U.S. industries and the U.S. minerals industry 



Industry segment 



Aft"- alsefs, Sales, 
ia tes ■ 10*$ 



Net 
in- 
come, 
10 6 $ 



_ . . Mineral 

Employee Land rj hts 

compen- Emp | oyees owned, owned and 

sa !l°r' leased, 

106$ acres 103 acr es 



PPE, 10 6 $ 



Gross E f end - 

book 'tyre 3 
for 

new 



value 



U.S. affiliates, 

10 6 $ 

Exports Imports 

shipped shipped 



1984 



Metal mining: 

Iron ore 4 1,291 628 

Copper, lead, zinc, gold and 

silver ores 15 2,097 885 

Other metallic ores 2 10 382 153 

Metal mining services 1 133 28 

Total 

Nonmetallic minerals, except 
fuels 

Primary metals: 

Ferrous metals 

Nonferrous metals 

Total 

Stone, clay, and glass 
products: 

Glass products 11 1,696 2,513 

Stone, clay, concrete and 
Others 66 6,317 5,463 

Total 77 8,013 7,975 

Total minerals industry 5 206 28,952 27,926 
All industries 9,630 596,396 596,048 

Metal mining: 

Iron ore 4 1,342 557 

Copper, lead, zinc, gold and 

silver ores 13 1 ,389 666 

Other metallic ores 2 11 420 194 

Metal mining services 2 141 25 

Total 

Nonmetallic minerals, except 
fuels 

Primary metals: 

Ferrous metals 

Nonferrous metals 

Total 

Stone, clay, and glass 
products: 

Glass products 10 1 ,465 1 ,990 

Stone, clay, concrete and 
others 61 5,346 4,291 

Total 71 6,811 6,281 

Total minerals industry 5 196 25,222 21,679 
All industries 9,347 531,738 536,640 

Metal mining: 

Iron ore 4 1 ,432 537 

Copper, lead, zinc, gold and 

silver ores 11 W W 

Other ores and mining 

services 12 W W 

Total 

Nonmetallic minerals, except 
fuels 

Primary metals: 

Ferrous metals 

Nonferrous metals 

Total 

Stone, clay, and glass 
products: 

Glass products 10 W W 

Stone, clay, concrete and 
others 52 W W 

Total 62 5,404 4^944 

Total minerals industry 5 186 24,089 18,418 

All industries 8,894 472,989 515,722 

See explanatory notes at end of table. 



46 



161 



3,407 



92 



W 



1,370 



93 



■95 


189 


6,319 


W 


w 


1,220 


96 


12 


6 


8 


35 


954 


9 


448 


279 


8 


7 


12 


•52 


6 


133 


W 


105 


153 


( 3 ) 









30 


3,903 


1,694 


-93 


391 


10,813 


173 


1,094 


3,023 


110 


112 


W 


15 


1,365 


611 


20 


111 


3,556 


144 


112 


1,135 


74 


86 


W 


47 
37 


5,021 
10,650 


6,163 
1 1 ,483 


-38 
-190 


1,376 
2,018 


35,270 

61,375 


26 

447 


40 
W 


5,104 

7,018 


138 

414 


67 
850 


451 
1,887 


84 


15,671 


17,646 


-228 


3,394 


96,645 


474 


W 


12,123 


552 


917 


2,338 



85 
-14 



W 
W 



25,573 
42,050 



5 
159 



( 4 ) 
W 



1,309 
4,743 



89 
298 



W 
W 



38 
189 



71 



2,090 



67,623 



164 



W 



6,052 



387 



231 



227 



-230 
9,400 



5,986 
72,902 



178,637 955 

2,715,318 13,258 



4,408 
63,266 



22,333 1,123 
268,214 24,995 



1,346 2,634 
56,344 100,427 



1983 



-15 



126 



2,399 



92 



W 



1,440 



144 



-69 


145 


4,876 


W 


W 


880 


59 


10 





1 


45 


1,335 


8 


416 


320 


14 


8 


21 


-50 


6 


128 


W 


163 


155 


( 3 ) 









30 


3,293 


1,442 


-134 


321 


8,738 


168 


1,650 


2,794 


76 


162 


W 


15 


1,216 


447 


-4 


89 


3,105 


144 


93 


1,081 


45 


61 


W 


45 
35 


3,017 
10,884 


2,985 
10,524 


-167 
34 


710 

1,929 


21 ,055 
62,521 


11 
465 


50 
W 


2,448 
7,133 


170 
339 


83 
1,077 


235 
1,509 


80 


13,902 


13,509 


-132 


2,639 


83,576 


475 


W 


9,581 


509 


1,160 


1,744 



34 
-219 



W 
W 



W 
W 



5 
143 



( 4 ) 
W 



1,211 
3,736 



73 
217 



W 
W 



36 
102 



-185 



1,734 



58,299 



147 



W 



4,948 



290 



175 



139 



-455 
5,584 



4,783 
66,807 



153,718 934 
2,546,514 14,198 



4,241 
69,714 



18,404 920 
244,012 23,179 



1,558 
53,854 



1,960 
81 ,464 



1982 



-117 
-58 
-57 



173 
W 
W 



3,950 
W 
W 



90 
W 
W 



W 
561 

W 



1,433 
W 
W 



17 

145 

4 



100 
W 
W 





1 
W 



27 


4,675 


873 


-232 


600 


15,160 


400 


1,440 


3,868 


166 


251 


W 


16 


4,502 


1,195 


-69 


235 


7,275 


W 


W 


3,958 


342 


181 


84 


44 
37 


3,164 
6,364 


2,874 
7,532 


-112 
-195 


768 
1,310 


21 ,732 
48,068 


12 
58 


W 
W 


2,511 
4,223 


361 

411 


130 
763 


369 
885 


81 


9,508 


10,406 


-307 


2,078 


69,800 


70 


W 


6,735 


772 


893 


1,254 



25 
-302 



W 
W 



W 
W 



5 
126 




33 



W 
W 



W 
W 



W 
W 



32 
75 



-277 



1,419 



46,621 



130 



33 



4,467 



202 



194 



107 



-885 
4,332 



4,332 
62,013 



138,856 
2,435,143 



600 

14,164 



4,525 
73,951 



19,028 1,482 
223,265 28,835 



1,519 
59,744 



1,577 
84,331 



10 



Table A-1 .—Selected data on foreign investments 1 in all U.S. industries and the U.S. minerals industry— Continued 



Industry segment 



Affil- 
iates 



Total 

assets, 

10 6 $ 



Net 
Sales, in- 
10 6 $ come, 
10 6 $ 



Employee 



Land 



Mineral 

compen- Emp | oyees owned, o^lnd 
sation, r 10 3 leaspd 

106$ acres ' e , ased ' 

10 3 acres 



PPE, 1Q6$ 

Gross E) fP end - 

book ■*""* 
for 

new 



value 



U.S. affiliates, 

10 6 $ 

Exports Imports 

shipped shipped 



1981 



27 


3,950 


1,963 


398 


606 


19,180 


132 


1,384 


3,384 


252 


196 


W 


15 


4,715 


1,088 


87 


329 


8,124 


W 


W 


3,578 


449 


143 


34 


43 
41 


2,972 
6,232 


3,271 
7,982 


49 
162 


799 
1,316 


25,616 
50,516 


11 
59 


W 
W 


2,149 
3,893 


364 
549 


112 
823 


371 

1.149 


84 


9,205 


1 1 ,252 


211 


2,115 


76,132 


71 


W 


6,042 


913 


935 


1.519 



Metal mining: 

Iron ore 3 905 701 W 

Copper, lead, zinc, gold 

and silver ores 12 W W W 

Other ores and mining 

services 12 W W -12 

Total 

Nonmetallic minerals, except 
fuels 

Primary metals: 

Ferrous metals 

Nonferrous metals 

Total 

Stone, clay, and glass 
products: 

Glass products 9 W W 13 

Stone, clay, concrete and 
others 51 W W -89 

Total 60 5,155 4,616 -76 

Total minerals industry 5 186 23,025 18,919 620 

All industries 8,253 406,985 510,218 11,23 

4 

Metal mining: 

Iron ore 3 916 587 49 

Copper, lead, zinc, gold 

and silver ores 11 413 219 -25 

Other ores and mining 

services 12 137 88 -22 

Total 

Nonmetallic minerals, except 
fuels 

Primary metals: 

Ferrous metals 

Nonferrous metals 

Total 

Stone, clay, and glass 
products: 

Glass products 11 W W 33 

Stone, clay, concrete and 
others 47 W W 15 

Total 58 4,436 4,186 48 

Total minerals industry 5 172 15,640 16.064 697 
All industries 7,310 292,033 412,705 8,917 

Metal mining: 

Iron ore 4 1 ,042 529 -3 

Copper, lead, zinc, gold 

and silver ores 6 346 176 15 

Other ores and mining 

services 7 59 16 -16 

Total 

Nonmetallic minerals, except 
fuels 6 

Primary metals: 

Ferrous metals 

Nonferrous metals 

Total 

Stone, clay, and glass 
products: 

Glass products 10 W 841 16 

Stone, clay, concrete and 
others 46 W 2,508 81 

Total 56 4,017 3,349 98 

Total minerals industry 5 160 13,862 13,105 546 

All industries 5,433 228,556 327,870 7,301 

See explanatory notes at end of table. 



154 
W 
W 



4,484 
W 
W 



W 
W 

4 



W 

746 

W 



1,232 
W 
W 



16 
228 



W 
W 
W 



W 
W 



W 
W 



1 
115 




36 



W 
W 



W 
W 



W 
W 



1,093 



42,389 



116 



36 



3.798 



319 



112 



4,143 



145,825 



319 



54,798 2,416,565 13.259 



4.626 



67.193 



16.802 1.933 



187.956 26,716 




W 
2 



18 
87 



104 



1 .386 1 .728 

64,066 82,259 



1980 



113 
W 
W 



3.424 
3.273 
1,126 



W 
W 

4 



W 

w 

543 



1.218 

338 

84 



14 
63 
18 





w 





w 
w 



w 
w 



1 

113 




13 



w 
w 



48 
281 



W 
W 



1.062 



46,524 



115 



13 



3.135 



329 



61 



3.305 
40.047 



136.156 
2.033.932 



748 
9,552 



867 
47,785 



10,999 1.256 
127,838 16.891 



26 


1,466 


893 


2 


209 


7,823 


97 


612 


1.640 


96 


W 


5 


13 


2,143 


872 


W 


165 


6.501 


W 


242 


1,282 


219 


W 


W 


39 
36 


2,257 
5,337 


2,786 
7,327 


9 
242 


656 
1,213 


22.562 
52.746 


7 
31 


W 
W 


1.672 
3.269 


226 

386 


180 
674 


319 
1.354 


75 


7,595 


10,113 


251 


1,869 


75,308 


38 


W 


4,942 


612 


854 


1.673 



18 
97 



115 



1,118 1.816 
52.199 75.803 



1979 



98 
W 
W 



3.565 
W 
W 



60 

22 





W 

129 

W 



1.226 

307 

30 



28 

34 

1 



189 





203 
689 



11.230 
35,794 



1 
105 




20 



W 
W 



W 
W 



W 
W 



893 



47.024 



106 



20 



3.017 



237 



67 



2,758 
31,686 



131,801 
1,753,188 



571 
7,316 



2.031 
39,943 



10.340 973 
101.209 11.150 



1.124 
44.341 



17 


1,448 


722 


-4 


171 


7,161 


82 


869 


1.563 


63 


189 





26 


2,577 


1,191 


133 


267 


10.565 


354 


1,142 


1.772 


176 


367 


W 


34 
27 


1,449 
4,371 


1,814 
6,029 


51 
269 


411 
1,015 


17.518 
49.533 


5 
24 



W 


1.057 
2.932 


97 
401 


91 

410 


119 
1.178 


61 


5,819 


7,843 


319 


1,427 


67,051 


29 


W 


3.989 


498 


501 


1.297 



18 
100 



118 



1.415 
63.039 



11 



Table A-1.— Selected data on foreign investments 1 in all U.S. industries and the U.S. minerals industry— Continued 

7T. Z ', I Z Mineral PPE, 10 6 $ U.S. affiliates, 

Total Net Employee Land Hants F ri ^6$ 

industry segment JJ assets, Sale, in- compen- Emp|oyees owned, | Gros. |t " E = s Imports 

106$ 106$ 10 e$ acres ' e 3 ased ' value for sh| PP ed sh, PP ed 

10 3 acres new 

1978 

Metal mining: 

Iron ore 4 995 436 -27 82 3,367 66 W 1,177 W 159 

Copper, lead, zinc, gold 

and silver ores 5 211 W -14 W W 20 W 264 17 

Other ores and mining 

services 7 56 W 2 W W W 857 28 1 

Total 16 1,262 581 -39 131 5,911 86 972 1,469 96 159 6 

Nonmetallic minerals, except 
fuels 6 23 2,395 882 7 237 10,380 W 1,212 1,624 143 226 W 

Primary metals; 

Ferrous metals 25 1,118 1,407 36 295 12,947 3 794 59 57 206 

Nonferrous metals 24 3,603 4,769 121 822 41,113 22 W 2,381 247 249 770 

Total 49 4,721 6,175 157 117 54,060 25 W 3,175 307 306 976 

Stone, clay, and glass 
products: 

Glass products 8 W W 17 W W 1 W W W 12 

Stone, clay, concrete and 
others 42 W W 129 W W 90 14 W W W 83 

Total 50 2,836 3,360 146 798 45,780 91 14 2,217 306 67 95 

Total minerals industry 6 138 11,214 10,998 271 2,283 116,131 202 2,198 8,485 852 758 1,071 

All industries 4,824 181,187 241,543 4,843 24,225 1,429,871 6,733 39,350 80,633 9,318 32,169 56,567 

1977 

Metal mining: 

Iron ore 6 1,269 305 -36 72 3,954 92 W W 164 82 

Copper, lead, zinc, gold 

and silver ores 5 187 WWW WW W WW0 

Other ores and mining 

services 7 40 W W W W 963 W W 

Total 18 1,496 430 ^53 109 6,229 TTo 1,083 1,764 171 82 

Nonmetallic minerals, except 
fuels 20 1,956 671 45 200 9,282 352 917 1,338 92 163 W 

Primary metals: 

Ferrous metals 24 996 1,019 -14 225 11,858 2 727 53 41 140 

Nonferrous metals 26 3,675 4,526 144 928 51,026 15 W 2,313 233 272 592 

Total 50 4,670 5,545 130 1,153 62,884 18 W 3,040 28(5 313 732 

Stone, clay, and glass 
products: 

Glass products 7 W W W W W 1 W W W 10 

Stone, clay, concrete and 
others 30 W W W W W 41 2 W W W 54 

Total 37 1,736 2,022 94 472" 32,265 42 2 1,378 171 35 64 

Total minerals industry 6 125 9,858 8,668 216 1,933 110,660 522 2,001 7,521 720 593 796 

All industries 4,046 143,488 193,991 3,966 18,781 1,218,711 6,753 33,281 66,785 7,558 24,858 43,896 

W Suppressed to avoid disclosure of proprietary data. PPE Gross book value of property, plant, and equipment, end of year. 

defined as ownership or control, directly or indirectly, by 1 foreign person (including any individual, branch, partnership, associated group, association, estate, 
trust, corporation, or other organization, and any foreign government) of 10 pet or more of the voting securities in an incorporated U.S. business enterprise 
or an equivalent interest in an unincorporated U.S. business enterprise. 

beginning in 1983, data for affiliates in "Other metallic ores" are shown separately. Prior to 1983, data for these affiliates were shown in a single industry, 
"Other ores and mining services." 

3 Less than $500,000. 

"Less than 500 acres. 

6 Data may not add to totals shown owing to independent rounding and because undisclosed proprietary data are added to totals. 

6 Prior to 1980, data for coal mining affiliates are included with nonmetallic minerals. 

Sources: U.S. Department of Commerce, Bureau of Economic Analysis (BEA). Detailed BEA estimates appear in the following Commerce publications: Foreign 
Direct Investment in the United States: Operations of U.S. Affiliates, 1977-80; Foreign Direct Investment in the United States: Annual Survey Results, Revised 
1981 Estimates; Foreign Direct Investment in the United States: Operations of U.S. Affiliates, Revised 1982 Estimates; Foreign Direct Investment in the United 
States: Operations of U.S. Affiliates, Revised 1983 Estimates; and Foreign Direct Investment in the United States: Operations of U.S. Affiliates, Preliminary 
1984 Estimation. In addition, estimates for selected items for the 1981-84 period, and a brief discussion of major changes in foreign direct investment appear 
in the Dec. 1984, Nov. 1985, and Oct. 1986 issues of the Survey of Current Business. Some of the detail for the minerals industries in this table is based on 
unpublished BEA estimates. 



12 



Table A-2.— Foreign investment in the U.S. minerals industry, by ultimate beneficial owner (UBO), 1985 



UBO and 
affiliate(s) or assets 



Ownership, 
pet 



Country 



Industry or commodity 



AB Tresor 

Uddeholm Aktiebolag 

Ellwood Uddeholm Steel Co 

Uddeholm Corp. USA 

Alcan Aluminium Ltd 

Alcan Aluminum Corp 

Halco Mining Corp 

Logan Aluminum Co 

Anglo American Corp. of South Africa Ltd 

Minerals and Resources (Minorco) 

Inspiration Resources 

Inspiration Consolidated Copper 

Terra Chemicals International Inc 

Englehard Corp 

Englehard Mineral and Chemical Corp 

Specialty Metals Div 

Freeport Kaolin 

Consolidated Gold Fields PLC 

Gold Fields American 

Newmont Mining 

Magma Copper Co 

Idarado Mining Co 

Resurrection Mining Co 

Newmont Mines Ltd 

Carlin Gold Mining 

Dawn Mining Co 

Pinto Valley Copper Co 

Foote Mineral Co 

South African Manganese Amcor Ltd.' 

Associated Minerals Consolidated Ltd 

Associated Minerals 

Asahi Glass Co 

Woodward Iodine Corp 

Asamera Inc 

Cannon Mine 

Barranca Corporation Ltd 

Joint venture with Little Square Gold Mining Co. 

Barrick Resources Corp 

Barrick Mercur Gold Inc 

Blue Circles Industries PLC 

Blue Circles Inc 

Brascan Ltd 

Brascade Resources 

Noranda Mines Ltd 

Noranda Mines Inc 

Joint venture, Pine Level project 

Joint venture, Greens Creek 

Noranda Aluminum 

Noranda U.S.A., Inc 

Norandex, Inc 

Noranda Lakeshore Mines Inc 

Canada Wire and Cable Ltd 

Carol Cable and Wire 

Placer Development Ltd 

Placer U.S. Inc 

Golden Sunlight Mines Inc 

McDermitt Mine 

Cortez Gold mines 

Bald Mountain property 

Noranda Grey Eagle Mines Inc 

Northland Gold Dredging 

Hopewell Land Corp 

Lacana Mining Inc 

Joint venture, Pinson Mining 

Gilt Edge property 

Joint venture, Santa Fe prospect 

British Steel Corp 

Joint venture with Tuscaloosa Steel Co 

Slater Steel Corp 

Broken Hill Proprietary Co. Ltd 

Utah International 

Utah Marona Corp 

See explanatory notes at end of table. 



NAp 
40 
20 

100 

NAp 

100 

27 

40 

NAp 



100 

60 
100 
100 

29 
100 
100 
100 

29 
100 

26 
100 

80 

50 
100 
100 

51 
100 

89 

29 
100 
100 

NAp 
100 

NAp 
100 

NAp 
NA 

NAp 
"100 

NAp 
100 

NAp 

70 
41 

100 

NA 

34 

100 

100 

100 

100 

100 

100 

31 

100 

100 

51 

40 

100 

62 

62 

100 

28 

26 

60 

NA 

NAp 
Ml 
50 

NAp 
100 

100 



Sweden 

. .do 

United States . 
. .do 



Canada 

United States . 

. .do 

. .do 



Steel. 
Steel mill 
Steel. 
Do. 


products 


Aluminum 
Aluminum 


thorium 


Iron ore. 
Aluminum sheet. 



Rep. of South Africa 



Bermuda 
United States . 

..do 

..do 



..do 

..do 

. do 

. .do 

United Kingdom. 
United States . . . 

do 

do 

do 

do 

do 

do 

.do 

do 

.do 



. . do 

Australia 

United States . 



Japan 

United States 



Canada 

United States . 



Canada 

United States . 



Canada 

United States 



United Kingdom 
United States . . . 



Canada 



do. 
do. 



United States. 

do 

do 

do 

do 

do 

do 

Canada 

United States 

Canada 

United States . 

do 

do 

do 

do 

do 

do 

do 

Canada 

United States . 

..do 

..do 



United Kingdom 
United States 
..do 



Australia 
United States 



do. 



Gold, copper, diamonds, energy; holding and 
management company for mining finance, 
investment metals, and agricultural products. 

Minerals. 

Metals, petroleum, chemicals, coal. 

Copper, silver, lead. zinc. gold. 

Nitrogen. 

Precious metals. 

Catalysts, precious metals, ferroalloys. 

Metals. 

Clays, kaolin, ceramics. 

Steel, mining, gold. 

Gold. 

Mining and nonferrous metals. 

Copper, gold. 

NA. 

Zinc, silver. 

NA. 

Gold, mercury. 

Uranium. 

Copper. 

Industrial minerals, calcium alloy, lithium, silicon, 
vanadium, ferroalloys. 

Ferroalloys. 

NA. 

Titanium, thorium, zirconium, rutiie. 

Glass products, alkali, chemicals, ceramics. 
Iodine. 

Oil and gas, minerals, machinery. 
Gold. 

Holding company. 
Gold. 

NA. 
Gold. 

Cement and allied products. 
Cement. 

Aluminum, copper, precious metals, natural 

resources, and consumer products 
NA. 
Nonferrous metals, fertilizers, oil and gas. 

aluminum, forest products 
Gold, lead, silver. 
Phosphate. 

Silver, lead, copper, gold. 
Aluminum. 
Aluminum sheet. 
Aluminum extrusions. 
Copper. 
Copper wire. 

Do. 
Gold, silver, copper, molybdenum. 
Gold. 

Do. 
Mercury. 
Gold. 

Do. 

Do. 

Do. 
Phosphate. 

Minerals, oil and gas exploration. 
Gold, mercury. 
Gold. 

Do. 

Steel. 
Strip mill. 
Stainless steel. 

Energy. 

Energy, lead. zinc. coal, iron and steel, gold 

exploration. 
NA. 



13 



Table A-2. — Foreign investment in the 

UBO and 
affiliate(s) or assets 

Canadian Pacific Ltd 

Canadian Pacific Enterprise Ltd 

Cominco Ltd 

Cominco American 

Joint venture, Magmont Mine 

Joint venture, Buckhorn property 

Joint venture, Red Dog deposit 

Hawaii Western Steel 

Cementa AB 

Continental Cement Co 

Cementia Holdings AG 

Davenport Cement Co 

Centennial Minerals Ltd 

Joint venture, Aurora property 

Ceramiche CISA S.p.A 

CISA America Corp 

Cia. Vale do Rio Doce 

Joint venture, California Steel 

Co-Steel International Ltd 

Chaparral Steel Co 

Raritan Steel Co 

Credit Lyomee 

Macalloy Corp 

Domtar Industries 

Gypsum mines 

Salt mines 

Echo Bay Mines Ltd 

Round Mountain Gold Corp 

Sunnyside Gold Co 

Electra Northwestern Resources Ltd 

Joint venture, Aurora property 

Elkem Spigerverkat A/S 

Elkem Metals 

ENI Group 

Anic 

Partnership with Agrico Chemicals Co 

Fermenta AB 

New Mexico Potash 

Galactic Resources Ltd 

Summitville Consolidated Mines Ltd 

Genstar Ltd 

Genstar Cement Co 

Getraco-Fimetal 

Bayou Steel Co 

Glamis Gold Ltd 

Chemgold Inc 

Government of France 

Entreprise de Recherches et d'Activites 
Petrolieres (ERAP). 

SocieteNationale Elf Aquitaine 

Elf Aquitaine-Texasgulf Chemicals 

Bureau de Recherches Geologiques et Minieres 

(BRGM). 

Joint venture with AMAX 

Compagnie Francaise d'Entreprises Minieres 

Metallurgiques et d'lnvestissements 

(COFREMMI). 

Government of Kuwait 

Willy Korf 

KORF Industries 

Georgetown Steel Corp 

Government of the United Kingdom 

British Petroleum Co. PLC (U.K.) 

Standard Oil Co. of Ohio (Sohio) 

Kennecott 

Chino Mines Co 

Amselco Minerals Corp 

Ozark Lead Co 

Sohio Chemical Co 

See explanatory notes at end of table. 



U.S. minerals industry, by ultimate beneficial owner (UBO), 1985 — Continued 



Ownership, 
pet 



Country 



Industry or commodity 



NAp 

70 

54 

100 

50 

100 

100 

51 

NAp 
100 

NAp 
100 

NAp 
NA 

NAp 
100 

NAp 
25 

NAp 

50 

100 

NAp 
48 

NAp 
100 
100 

NAp 

50 

100 

NAp 
NA 

NAp 
100 



NAp 

100 

21 

NAp 
100 

NAp 
100 

NAp 
100 

NAp 
70 

NAp 
100 

NAp 
100 

67 
100 

100 

NA 

NA 



NAp 

70 

100 

100 

NAp 

2 25 

55 

100 

67 

50 

100 

100 



Canada 

. .do 

. . do , 

United States . 

. .do 

. .do 

. .do 

..do 



Sweden 

United States . 

Switzerland . . 
United States . 



Canada 

United States . 



Italy 

United States . 



Brazil 

United States. 



Canada 

United States. 
..do 



France 

United States . 



Canada 

United States . 
..do 



Canada 

United States . 
. . do 



Canada 

United States . 



Norway 

United States . 



Italy 

..do 

United States . 



Sweden 

United States . 



Canada 

United States . 



Canada 

United States . 



France 

United States . 



Canada 

United States . 



France 
. .do. . 



..do 

United States . 



France 

United States. 
France 



Oil and gas, minerals, forestry, railroads. 

NA. 

Lead, zinc, plant nutrients, silver, gold. 

Nonferrous minerals, industrial minerals. 

Lead, silver, zinc. 

Gold, silver. 

Zinc, lead, silver. 

Steel. 

Cement. 
Do. 

Do. 
Do. 

NA. 
Gold. 

NA. 

Kaolin. 

Iron ore. 

Steel mill products. 

Steel. 
Do. 
Do. 

NA. 
Ferroalloys. 

Zinc. 

Gypsum. 

Salt. 

Nonferrous metals. 
Gold, silver. 
Gold. 

NA. 
Gold. 

Steel, ferroalloys. 

Calcium, chromium, ferrolloys, zirconium, silicon 
alloys. 

NA. 
NA. 
Phosphate rock. 

NA. 
Potash. 

NA. 
Gold. 

Cement. 
Do. 

NA. 

Steel. 

NA. 
Gold. 

NAp. 
NA. 

NA. 

Energy, chemicals, phosphate rock, sulfur, potash, 

salt, oil exploration, and chemicals. 
NAp, government agency. 

Nickel, cobalt. 

NA. 



Kuwait NAp. 

Fed. Rep. of Germany Steel, steel technologies. 

United States Steel technology. 

. .do Steel. *> 

United Kingdom NAp. 

. . do Energy and natural resources, especially oil 

United States Oil and gas. 

.do Nonferrous metals. 

.do Copper, gold. 

.do Gold 

.do Lead. 

.do Nitrogen. 



14 



Table A-2. — Foreign investment in the U.S. minerals industry, by ultimate beneficial owner (UBO), 1985 — Continued 



UBO and 
affiliate(s) or assets 

Hampton Gold Mining Areas PLC 

Joint venture, Craig, CO mine 

Heidelberger Zement AG 

Lehigh Portland Cement Co 

Holderbank Financiere Glaris S.A 

Dundee Cement Co 

IFI International S.p.A 

River Cement 

Hercules Cement 

Imetal SA 

Copperweld 

Inco Ltd 

International Nickel Inc 

Inco Alloys International Inc 

Inco United States 

International Metal Reclamation Co. . 
American Copper & Nickel Co 

Ivaco Inc 

Atlantic Steel Co 

Lanclede Steel Co 

Capital Wire and Fence Co 

Florida Wire and Cable 

National Wire Products Corp 

New York Wire Mills 

Johnson Matthey Public Limited Co. . . . 

Johnson Matthey Inc 

Johnson Matthey Refining Inc 

Kawasaki Steel Corp 

California Steel 

Kemira Oy 

Savannah, GA, titanium dioxide plant 

LaFarge Corp 

General Portland 

Madre Mining Ltd 

Deer Trail Mine 

Mediterranean Investors Group S.A 

Sunshine Mining Co 

Idaho Garnet Abrasives 

Sixteen-to-One Mine 

Lincoln Mining Co 

Gilt Edge 

MIM Holdings Ltd 

ASARCO Incorporated 3 

Joint venture, Eisenhower Mining Co. 
Joint venture, Resurrection Mining . . 

Mitsubishi Metal Corp 

Chino Mines Co 

Mitsui & Co. Ltd 

Alumax 

Eastalco Aluminum 

Intalco Aluminum Co 

Mitsui & Co. USA 

Inorgchem Development Inc 

North American Brine Resources . . . 
International Titanium Co 

Montoro Gold 

Gold deposit 

MPC Holdings Ltd 

Missouri Portland Cement Co 

Musto Exploration Ltd 

Apex Mine 

Nippon Kokan K.K 

National Steel Corp 

National Southwire Co 

International Light Metals Corp 

See explanatory notes at end of table. 



Ownership, 
pet 



Country 



Industry or commodity 



NAp 
NA 

NAp 
100 

NAp 
100 

NAp 
100 
100 

NAp 
66 

NAp 
100 
100 
100 
100 
100 

NAp 

100 

51 

100 

88 

60 

100 

NAp 
100 
100 

NAp 
25 

NAp 
100 

NAp 
100 

NAp 
100 

NAp 
28 

100 
67 

100 
40 

NAp 
32 

50 
50 

NAp 
33 

NAp 



45 

100 
100 
100 
100 
10 
18 

NAp 
100 

NAp 
100 

NAp 
100 

NAp 

50 

100 

40 



United Kingdom. 
United States . . . 



Investment company with holdings in mining. 

r^rtlH raro oarihe 



Gold, rare earths. 



Fed. Rep. of Germany. 
United States 



Switzerland . . 
United States . 



Italy 

United States . 
..do 



France 

United States . 

Canada 

United States . 

. .do 

..do 

..do 

..do 



Canada 

United States . 

.do 

.do 

.do 

.do 

.do 



United Kingdom 
United States . . . 
. .do 



Japan 

United States . 



Norway 

United States 



France 

United States . 



Canada 

United States . 



Saudi Arabia . 
United States . 

. do 

..do 

..do 

. do 



Australia 

United States 



do. 
do. 



Japan 

United States 

Japan 



United States 

.do 

.do 

.do 

do 

do 

.do 



Canada 

United States . 

Switzerland . 
United States 



Canada 

United States . 

Japan 

United States . 

. .do 

. do 



Cement. 
Do. 

NA. 
Cement. 

NA. 

Cement. 
Do. 

Holding company, nonferrous metals. 
Steel, copper fabrication. 

Nickel and copper, and their byproducts. 

NA. 

Nickel alloy. 

NA. 

NA. 

Gold exploration. 

Steel and paper. 
Steel. 

Do. 
Steel mill products. 

Do. 

Do. 

Do. 

Precious and other metals, pigments. 
Precious metals. 
Do. 

Steel. 

Steel mill products. 

Fertilizers and chemicals. 
Titanium dioxide. 

Cement, concrete, aluminous cements, plaster. 
Cement. 

NA. 

Silver. 

Holding company. 
Antimony, silver, precious metals. 
Garnet. 
Silver, gold. 
Gold. 
Do. 

Nonferrous metals 

Arsenic, bismuth, calcium alloy, copper, selenium. 

silver, dolomite, zinc. 
Copper. 
Zinc, lead, silver. 

Nonferrous metals 
Copper. 

Iron and steel, machinery, foodstuffs, chemicals 

(including fertilizer), nonferrous metals, textiles. 

energy, lumber and forestry, rubber, construction. 
Aluminum. 

Do. 

Do. 
Holding company. 
NA. 
Iodine. 
Titanium. 

NA. 
Gold. 

NA. 
Cement. 

NA. 

Germanium, gallium, silver, zinc. 

Steel. 
Do. 
Aluminum. 
Titanium, lightweight alloy technologies. 



15 



Table A-2.— Foreign investment in the U.S. minerals industry, by ultimate beneficial owner (UBO), 1985— Continued 



UBO and 
affiliate(s) or assets 



Ownership, 
pet 



Country 



Industry or commodity 



Nisshin Steel Co. Ltd 

Wheeling-Pittsburgh Steel Corp.' 



Norcen Energy Resources Ltd. of Toronto 
M.A. Hanna Co 



Northern Dynasty Exploration Ltd. . . 
Northern Dynasty Exploration Ltd. 



Otto Wolff Handelgesellschaft 
Hurricane Industries Inc. . . 



Outokumpu Oy . . 
The Nippert Co. 



Pegasus Gold Ltd. . 
Landusky project . 
Montana property 
Zortmon project . . 



Placer Development Ltd. 
Cortez Gold Mines . . . 



Pressa S.p.A. Cementaria Robilante . 
Alamo Cement Co 



Rajso Torv AB 

Minnesota State lease 



Rayrock Yellowknife Resources Inc. 
Western Agriculture Minerals Co. 

Pinson Mining Co 

Preble Mining Co 

Dee Gold Mining Co 



Rhone Poulenc S.A. . 
Rhone Poulenc Inc. 



Rio Tinto Zinc Corp. Ltd 

Borax Holdings Ltd 

U.S. Borax & Chemical Corp. . . 

CRA Ltd 

Comalco 

Commonwealth Aluminum Corp. 



Royal Dutch/Shell Group 
Billiton Exploration . . . 

Billiton Metals 

General Atomic Co. . . 



Seagrams Co 

E.I. duPont de Nemours & Co. Inc. 

SKW Trostberg Aktiengesellschaft . . 
SKW Alloys Inc 



Societe des Ciments Francais 
Coplay Cement Co. ....... 



Societe des Ciments Vicats 
National Cement Co 



Societe Generale de Belgique . . 
Union Miniere SA (Belgium) . . 
Joint venture, Union Mines Inc 

Union Zinc 

Jersey Miniere Zinc Co 

Joint venture, Pine Level project 
SADACEM and SEDEMA SA . . . 

Union Copper Inc 

Platoro 

Carolmet 

Chemetals, Inc 



(USA) 



Sonora Gold Co. . 
Jamestown Mine 



St. Lawrence Cement Inc. . 
Independent Cement Co. 



Sumitomo Metal Corp 

Joint venture with LTV Corp 

Partnership with Allegheny Ludlum Steel Corp. 
ALS Metals Co. 

Morenci copper mine 

Tyrone copper mine 



NAp 
10 

NAp 

20 

NAp 
100 

NAp 
100 

NAp 

100 

NAp 
100 
100 
100 

NAp 
100 

NAp 
100 

NAp 
100 

NAp 
25 
27 
27 
29 

NAp 
100 

NAp 

100 

100 

57 

67 

100 

NAp 
100 
100 
100 

NAp 
23 

NAp 
100 

NAp 
100 

NAp 
100 

NAp 
100 
100 
100 
100 
NA 
100 
100 
100 
100 
100 

NAp 
100 

NAp 
100 

NAp 
NA 

NA 

15 
15 



Japan 

United States . 



Canada 

United States . 



Canada 

United States . 



Fed. Rep. of Germany. 
United States 



Finland 

United States . 

Canada 

United States . 

. . do 

. .do 



Canada 

United States . 



Italy 

United States . 



Sweden 

United States . 

Canada 

United States . 

. .do 

..do 

. .do 



France 

United States . 



United Kingdom . 

. .do 

United States . . . 

Australia 

. .do 

United States . . . 



Netherlands/United Kingdom 

United States 

..do 

. .do 



Canada 

United States . 



Fed. Rep. of Germany 
United States 



France 

United States . 



France 

United States . 



Belgium 

..do 

United States . 

..do 

..do 

..do 

Belgium 

United States . 

..do 

..do 

..do 



Canada 

United States . 



Canada 

United States . 



Japan 

United States . 
. .do 



.do. 
do. 



Iron and steel. 
Steel. 

Exploration and development with interests mainly 

in oil, gas, and coal. 
Iron ore, nickel, silicon, ferrosilicon, and ferronickel. 

Gold. 
Do. 

NA. 
Steel. 

Stainless steel, copper, zinc, nickel, ferrochrome, 

precious metals. 
Copper rod and wire mill. 

Gold, silver. 
Do. 
Do. 
Do. 

Gold. 
Do. 

Cement. 
Do. 

NA. 
Peat. 

NA. 

Potash. 

Gold. 

Do. 

Do. 

NA. 

Rare earths, thorium hydroxide. 

Energy and minerals. 
Boron. 

Boron, molybdenum, silver. 
Investment company. 
Aluminum. 
Do. 

Oil and gas, chemicals, metals, and coal. 
Metals. 

Do. 
Thorium, nuclear fuels. 

NA. 

Chemicals, materials. 

NA. 
Ferroalloys. 

NA. 
Cement. 

Cement, construction materials. 
Cement. 

Nonferrous metals, cable, engineering. 

Metals, nonmetals. 

Metals, investments in mining. 

Zinc. 

Zinc, germanium. 

Phosphate. 

Vanadium and molybdenum. 

NA. 

NA. 

Cobalt. 

Ferroalloys. 

NA. 
Gold. 

NA. 
Cement. 

Steel and engineering. 
Galvanized zinc. 
Titanium. 

Copper, gold. 
Do. 



See explanatory notes at end of table. 



16 



Table A-2.— Foreign investment in the U.S. minerals industry, by ultimate beneficial owner (UBO), 1985 — Continued 



UBO and 
affiliate(s) or assets 



Ownership, 
pet 



Country 



Industry or commodity 



Swiss Aluminum Ltd. (Alusuisse) . 
Consolidated Aluminum Corp. . 
Ormet Corp 



Terramar Resources Corp. 
TRL Resources Inc. . . . 

Rainbow claims 

Reid Mine 



United Resources Industries Inc. . 

Godoe USA Inc 

North American Brine Industries 



Veronex Resources Ltd. of Canada 
Joint venture, Junction Reef prospect 



Voest-Alpine AG . . . 
Bayou Steel Corp. 



Von Roll AG 

New Jersey Steel Corp. 



Westerly Mines Ltd 

Joint venture, Santa Fe prospect . 



Wharf Resources Ltd. 
Tiaga Gold Inc. . . . 



NAp Switzerland Aluminum, chemicals, engineering, energy, mining. 

92 United States Aluminum, magnesium-thorium alloys. 

66 . .do Alumina, aluminum. 

NAp Canada NA. 

100 . .do NA. 

100 United States Gold. 

100 . do Gold, silver. 

NAp Japan NA. 

100 . .do NA. 

50 United States iodine. 

NAp Canada NA. 

NA United States Gold. 

NAp Austria NA. 

30 United States Steel. 

NAp Switzerland NA. 

100 United States Steel. 

NAp Canada NA. 

NA United States Gold. 

NAp Canada NA. 

100 United States Gold. 



Ml Minority interest. NA Not available. NAp Not applicable. 
1 Also 38.5 pet held by African Metals Ltd. 
2 British Petroleum is also 17 pet owned by the Bank of England. 
3 ASARCO in turn owns 44 pet of MIM Holdings. 
"Wheeling-Pittsburgh has since filed for bankruptcy. 

Sources: U.S. Bureau of Mines Minerals Yearbook (various years); U.S. Bureau of Mines Minerals and Materials Monthly (various issues); Moody's Interna- 
tional Industrial Index; Forbes Directory of 100 Largest Foreign Investors in the United States (various years); Engineering and Mining Journal International 
Directory of Mining Corporations; various corporate annual reports. 



Table A-3. — Foreign investment in U.S. steel capacity, 1985 



Country and ultimate beneficial owner 



U.S. steel company 



Proportional 
foreign con- 
trol, pet 



Capacity. 10 3 st 



Total 



Equivalent 
foreign-owned 



Austria; Voest-Alpine AG 

Canada: 

Canadian Pacific Ltd 

Co-Steel International 

Do 

Ivaco Inc 

Do 

Federal Republic of Germany: 

Otto Wolff Handelgesellschaft 

KORF Industries 2 

France: Getraco-Fimetal 

Japan: 

Nippon Kokan K.K 

Nisshin Steel Co. Ltd 

Sweden: Uddeholm Aktiebolag 

Switzerland: Von Roll AG 

United Kingdom: British Steel Corp 

Total 

NAp Not applicable. 

1 Reflects the ownership interests of Cominco Ltd. 
2 70 pet owned by the Government of Kuwait. 
Equivalent to 5 pet of U.S. raw steel capacity. 



Bayou Steel Corp 30 

Hawaii Western Steel 

Chaparral Steel Co 

Raritan Steel Co 

Atlantic Steel Co 

Laclede Steel Co 

Hurricane Industries Inc 

Georgetown Steel Corp 

Bayou Steel Corp 

National Steel Corp 

Wheeling-Fittsburgh Steel Corp 

Ellwood Uddeholm Steel Co 

New Jersey Steel Corp 

Slater Steel Corp 

NAp NAp 



650 



13.390 



195 



'51 


60 


31 


50 


1.200 


600 


100 


880 


880 


100 


740 


740 


51 


800 


408 


100 


100 


100 


100 


660 


660 


70 


650 


455 


50 


4,900 


2.450 


10 


3.000 


300 


20 


100 


20 


100 


240 


240 


50 


60 


30 



»7 • OS 



a Canadian affiliate of Canadian Pacific Ltd. 



17 



Table A-4.— Foreign investment in U.S. tonnage ferroalloys 1 capacity, 2 1985 



Country and ultimate 
beneficial owner 



U.S. operator 



Smelter 



Proportional 
foreign con- 
trol, pet 



Belgium: SEDEMA SA Chemetals Inc Kingwood, WV . . . 

Canada: 

Norcen Energy Resources Ltd M. A. Hanna Co Riddle, OR 

Do do Wenatchee, WA . . 

Federal Republic of Germany: 

SKW Trostberg Aktiengesellschaft SKW Alloys Inc Niagara Falls, NY 

Do do Calvert City, KY . . 

France: Credit Lyomee Macalloy Corp Charleston, SC . . 

Norway: 

Elkem Spigerverkat A/S Elkem Metals Alloy, WV 

Do do Ashtabula, OH . . . 

Do do Marietta, OH .... 

United Kingdom: 

Consolidated Gold Fields PLC 3 Foote Minerals Co Keokuk, IA 

Do do Graham, WV 



100 

28 
28 

100 

100 

48 

100 
100 
100 

21 
21 



'Chromium, manganese, and silicon ferroalloys and metal. 

2 Data on the capacity of individual ferroalloy smelters are not available for publication. For the industry in the aggregate, foreign-owned capacity (prorated 
based on the percentage of voting securities held by the foreign owner) amounted to 726 MW of active furnace capacity at the end of 1985. This was equivalent 
to 56 pet of total U.S. active tonnage ferroalloys (and their respective metals) capacity. 

3 29 pet owned by Anglo-American. 



Table A-5.— Foreign investment in U.S. primary aluminum smelting capacity, 1985 



Country and ultimate 
beneficial owner 



U.S. operator 



Smelter 



Proportional 
foreign con- 
trol, pet Total 



Capacity, 10 3 st 



Equivalent 
foreign-owned 



Canada: 

Alcan Aluminium Ltd Alcan Aluminum Corp 

Brascan Ltd Noranda Aluminum 

Japan: 

Mitsui & Co. Ltd Alumax 

Do do 

Do do 

Nippon Kokan K.K National Southwire Co 

Switzerland: 

Swiss Aluminum Ltd Consolidated Aluminum Corp. . 

Do Ormet Corp 

United Kingdom: 

Rio Tinto Zinc Corp. Ltd Commonwealth Aluminum Corp. 

Total NAp 



Sebree, KY 100 180 "1,335 

New Madrid, MO MOO 225 225 

Mt. Holly, SC 2 50 200 100 

Frederick, MD 2 50 176 88 

Ferndale, WA 2 50 280 140 

Hawesville, KY 50 190 95 

New Johnsonville, TN 100 144 144 

Hannibal, OH 66 270 178 

Goldendale, WA 3 100 185 185_ 

NAp NAp 1,850 "1 ,335 



NAp Not applicable. 

'Reflects ownership interests of Noranda Mines Ltd., a Canadian affiliate of Brascan Ltd. 

2 Alumax is 45 pet owned by Mitsui and 5 pet owned by Nippon Steel. 

3 Reflects ownership interests of CRA Ltd., an Australian affiliate of RTZ. 

"Equivalent to 25 pet of U.S. primary aluminum smelting capacity. 



Table A-6.— Foreign investment in U.S. copper mining capacity, 1985 



Country and ultimate 
beneficial owner 



U.S. operator 



Mine 



Proportional 
foreign con 



Capacity, 1 10 3 mt 



trol, pet To,al 



Equivalent 
foreign-owned 



Australia: MIM Holdings Ltd ASARCO Incorporated 

Canada: Brascan Ltd Noranda Lakeshore Mines Inc. 

Japan: 

Mitsubishi Metal Corp Chino Mines Co 

Sumitomo Metal Corp Phelps Dodge 

Republic of South Africa: 

Anglo-American Corp Inspiration Resources 

United Kingdom: 

Consolidated Gold Fields PLC" .... Newmont Mining 

Do" Pinto Valley Copper Co 

Do" do 

British Petroleum Co. PLC 5 Kennecott 

Do 5 do 

Do 5 Chino Mines Co 

Total 



NAp 



Several 

Lakeshore 

Chino Mines .... 
Morenci 

Several 

San Manuel .... 
Pinto Valley .... 

Miami 

Ray Mines 

Bingham Canyon 
Chino Mines .... 
NAp 



32 


155 


100 


10 


33 


110 


15 


235 


360 


70 


26 


120 


26 


85 


26 


5 


55 


100 


55 


230 


37 


110 



NAp 



1,230 



50 
10 

36 
35 

42 

31 
22 
1 
55 
127 
41 



6450 



NAp Not applicable. 

'Recoverable copper. 

2 Reflects ownership interests of Noranda Mines Ltd., a Canadian affiliate of Brascan Ltd. 

3 Reflects ownership interests of Minorco, a Bermuda-based affiliate of Anglo-American. 

"29 pet owned by Anglo-American. 

5 25 pet owned by the Government of the United Kingdom. 

Equivalent to 30 pet of U.S. copper mining capacity. 



18 



Table A-7. — Foreign investment in U.S. lead mining capacity, 1985 



Country and ultimate 
beneficial owner 



U.S. operator 



Mine 



Proportional 
foreign con- 
trol, pet 



Capacity, 1 10 3 mt 



Total 



Equivalent 
foreign-owned 



Australia: 

MIM Holdings Ltd ASARCO Incorporation Leadville . . 

Do do West Fork 

Canada: Canadian Pacific Ltd Cominco American Magmont . 

United Kingdom: British Ozark Lead Co Milliken . . . 

Petroleum Co. 2 

Total NAp NAp 



32 
32 
50 
55 



7 
46 
82 
82 



2.24 
14.72 
41.00 
45.10 



NAp 



217 



3103.06 



NAp Not applicable. 

Recoverable lead. 

2 25 pet owned by the Government of the United Kingdom; Milliken Mine closed since 1983. 

Equivalent to 18 pet of U.S. lead mining capacity. 



Table A-8.— Foreign investment in U.S. zinc mining capacity, 1985 



Country and ultimate 
beneficial owner 



U.S. operator 



Mine 



Proportional Capacity, 1 10 3 mt 

foreign con- Tota| Equivalent 

trol, pet foreign-owned 



Australia: 

MIM Holdings Ltd ASARCO Incorporated Leadville 

Do do Several 

Belgium: Societe Generale Jersey Miniere Zinc Co Elmwood-Gordonsville . 

de Belgique. 

Canada: Canadian Pacific Ltd Cominco American Magmont 

Republic of South Africa: Inspiration Resources Beaver Creek 

Anglo-American Corp. 

United Kingdom: British Ozark Lead Co Milliken 

Petroleum Co. 4 

Total NAp NAp 



16 

32 

100 

2 50 
360 

55 



15 2.4 

65 20.8 

55 55.0 



20 
15 



10 



10.0 
9.0 



5.5 



NAp 



180 



5102.7 



NAp Not applicable. 

1 Metal content. 

2 Reflects ownership interests of Cominco Ltd., a Canadian affiliate of Canadian Pacific Ltd. 

3 Reflects ownership interests of Minorco, a Bermuda-based affiliate of Anglo-American. 

"25 pet owned by the Government of the United Kingdom; Milliken Mine closed since 1983. 

Equivalent to 26 pet of U.S. zinc mining capacity. 



Table A-9.— Foreign investment in U.S. gold mining capacity, 1 1985 



Country and ultimate 
beneficial owner 



U.S. operator 



Mine 



Proportional 
foreign con- 
trol, pet 



Capacity. 10 3 tr oz 



Total 



Equivalent 
foreign-owned 



Australia: MIM Holdings Ltd ASARCO Incorporated Leadville 

Canada: 

Asamera Inc Asamera Minerals (U.S.) Inc Cannon 

Barrick Resources Corp Barrick Mercur Gold Inc Mercur 

Brascan Ltd Golden Sunlight Mines Inc Golden 

Do Pinson Mining Pinson 

Do Noranda Grey Eagle Mines Inc Grey Eagle 

Echo Bay Mines Ltd Round Mountain Gold Corp Round Mountain . . . 

Do Sunnyside Gold Co Sunnyside 

Galactic Resources Ltd Summitville Consolidated Mines Ltd. . . Surnmitville 

Glamis Gold Ltd Chemgold Inc Picacho 

Northern Dynasty Exploration Ltd. . . . Northern Dynasty Exploration Ltd Little Bald Mountain 

Pegasus Gold Ltd Pegasus Gold Ltd Landusky-Zortmon 

Placer Development Ltd Cortez Gold Mines Cortez 



Do 



do Bald Mountain . 

Dee Gold Mining Co Dee 

Tiaga Gold Inc Annie Creek . . . 

Phelps Dodge Morenci-Tyrone 



Rayrock Yellowknife Resources Inc 

Wharf Resources Ltd 

Japan: Sumitomo Metal Corp 

Republic of South Africa: 

Anglo-American Corp Carlin Gold Mining Operations Carlin . . 

Do Gold Fields Operations Co Ortiz . . . 

Do do Mesquite 

Do Inspiration Consolidated Copper Christmas 



Do 

Saudi Arabia: 
Mediterranean Investors Group S.A. 

Do 

United Kingdom: 

British Petroleum Co. PLC. 6 

Do 

Do 

Total 



Magma Copper Co San Manuel 



Sunshine Mining Co Sixteen-to-One 

. . do Trixie 



Kennecott Chino 

Amselco Minerals Corp Alligator Ridge 

. . do Gooseberry . . 

NAp NAp 



32 



NAp 



e 20 



100 


180 


180 


100 


100 


100 


100 


e 110 


110 


2 26 


75 


20 


62 


e 50 


31 


50 


160 


80 


100 


40 


40 


100 


e 130 


130 


100 


30 


30 


42 


e 10 


4 


100 


100 


100 


40 


60 


24 


84 


50 


52 


29 


e 55 


16 


32 


e 20 


6 


15 


e 29 


4 


356 


345 


90 


3100 


<50 


50 


3100 


160 


160 


560 


1 


1 


326 


e 30 


8 


8 


10 


1 


8 


e 25 


1 


55 


16 


9 


50 


110 


55 


85 


16 


■- 



1.982 



'1.314 



Estimated. NAp Not applicable. 

1 Partial listing; numerous smaller mines with partial or full Canadian ownership are not included. 

2 Reflects ownership interests of Lacana Mining Inc.. a Canadian affiliate of Brascan Ltd. 

3 Reflects ownership interests of Consolidated Gold Fields PLC. an affiliate of Anglo-American. 

"Due to close in 1986. 

5 Reflects ownership interests of Minorco, a Bermuda-based affiliate of Anglo-American. 

6 25 pet owned by the Government of the United Kingdom. 

Equivalent to 44 pet of estimated U.S. gold mining capacity. 



19 



Table A-10.— Foreign investment in U.S. silver mining capacity, 1985 



Country and ultimate 
beneficial owner 



U.S. operator 



Mine 



Proportional 
foreign con- 
trol, pet 



Capacity, 10 3 tr oz 



Total 



Equivalent 
foreign-owned 



Golden 

Magmont 

Round Mountain . 
Landusky-Zortmon 



Australia: MIM Holdings Ltd ASARCO Incorporated Several 

Canada: 

Brascan Ltd Golden Sunlight Mines Inc. 

Canadian Pacific Ltd Cominco American 

Echo Bay Mines Ltd Round Mountain Gold Corp 

Pegasus Gold Ltd Pegasus Gold Corp 

Republic of South Africa: 

Anglo-American Corp Black Pine Mining Co Black Pine . 

Do Carlin Gold Mining Operations Carlin 

Do Gold Fields Operations Co Ortiz 

Do Inspiration Consolidated Copper Christmas . 

Do Magma Copper Co San Manuel 

Saudi Arabia: 
Mediterranean Investors Group SA 

Do 

United Kingdom: 

British Petroleum Co." Kennecott Bingham Canyon 

Do do Chino 

Do Ozark Lead Co Milliken 

Total . . NAp NAp 



Sunshine Mining Co Sunshine .... 

• do Sixteen-to-One 



32 

100 

1 50 

50 

100 

e 50 
226 

2100 

3 60 
226 

8 
8 

55 
55 
55 



NAp 



9,745 

13 
397 

53 
112 

1,019 

20 

6 

28 

509 

4,550 
1,472 

996 
369 
285 



19,574 



3,118 

13 
199 

27 
112 

510 
5 
6 

17 
132 

364 
118 

548 
203 
157 



=5,529 



"Estimate. NAp Not applicable. 

'Reflects ownership interests of Cominco Ltd., a Canadian affiliate of Canadian Pacific Ltd. 
2 Reflects ownership interests of Consolidated Gold Fields PLC, an affiliate of Anglo-American. 
3 Reflects ownership interests of Minorco, a Bermuda-based affiliate of Anglo-American. 
4 25 pet owned by the Government of the United Kingdom; Milliken Mine closed since 1983. 
Equivalent to 11 pet of U.S. silver mining capacity. 



Table A-1 1 . 


—Foreign investment in U.S. cement (clinker) capacity, 1985 




Country and ultimate 
beneficial owner 


Proportional 
U.S. operator foreign con- 
trol, pet 


Capacity, 10 3 st 


Total , Equivalent 
foreign-owned 



Canada: 

Genstar Ltd 

St. Lawrence Cement Inc 

Federal Republic of Germany: Heidelberger Zement AG 
France: 

LaFarge Corp 

Societe des Ciments Francais 

Societe des Ciments Vicats 

Italy: 

IFI International S.p.A 

Do 

Pressa S.p.A. Cementaria Robilante 

Sweden: Cementa AB 

Switzerland: 

Cementia Holdings AG 

Holderbank Financiere Glaris S.A 

MPC Holdings Ltd 

United Kingdom: Blue Circles Industries PLC 

Total 

NAp Not applicable. 

'Equivalent to 32 pet of U.S. cement (clinker) capacity 



Genstar Cement Co 1 00 

Independent Cement Co 100 

Lehigh Portland Cement Co 100 

General Portland 100 

Coplay Cement Co 1 00 

National Cement Co 100 

Hercules Cement 100 

River Cement 100 

Alamo Cement Co 100 

Continental Cement 100 

Davenport Cement 100 

Dundee Cement Co 100 

Missouri Portland Cement Co 100 

Blue Circles Inc 100 

NAp NAp 



1,134 
1,087 
4,559 

6,135 

2,760 

738 

519 

1,116 

787 

583 

780 
3,225 

497 
3,296 



1,134 
1,087 
4,559 

6,135 

2,760 

738 

519 

1,116 

787 

583 

780 
3,225 

497 
3,296 



27,246 



127,246 



20 



Table A-1 2. —Foreign investment in the U.S. minerals industry — chronological listing of major acquisitions since 1980 



Buyer and country Acquisition 

IFI International, S.p.A., Italy River Cement and Hercules 

Cement. 

Swiss Aluminum Ltd. Consolidated Aluminum Corp. 

(Alusuisse), Switzerland. (40 pet). 

Mediterranean Investors Group Sunshine Mining Co 

S.A., Saudi Arabia. 

Canada Wire and Cable Ltd., Carol Cable and Wire 

Canada. 

Alan E. Clore, United Kingdom . . . Gulf Resources and Chemical Co. 

Consolidated Gold Fields PLC, Newmont Mining 

United Kingdom. 

Elf Aquitaine, France Texasgulf (now Elf Aquitaine) .... 



Purchase 


Price, 10 6 $ 


Year 


NA 


1980 


150 


1980 


NA 


1980-81 


140 


1981 



Comments 



Elkem Spigerverkat A/S, Norway . . Union Carbide ferroalloy plant 

Ivaco Inc., Canada Florida Wire and Cable 

Standard Oil Co. (Ohio), Kennecott Corporation 

United States. 

Blue Circle Industries PLC, Kilgore Ceramics 

United Kingdom. 

LaFarge Corp., France General Portland 



Blue Circle Industries PLC, 
United Kingdom. 



Martin Marietta cement plants (4) 



Godoe USA Inc. and Inorgchem North American Brine Resources 

Development Inc., United States. 



Newmont Mining, United States. . Cities Service Co. copper 

operations, Miami, AZ. 

Sunshine Mines, United States . . . HMC Mining Inc 



Texasgulf Chemicals Co., 
United States. 



Alcan Aluminium Ltd., Canada. 
Asahi Glass Co., Japan 



Sodium lease tracts, 
Green River, WY. 



ARCO Aluminum Co 

Woodward Iodine Operations 



Broken Hill Proprietary Co. Ltd. 
Australia. 



Utah International and Utah 
Marona Corp. 



California Steel 



Local investors (50 pet), 
United States; Cia. Vale do Rio 
Doce, Brazil; and Kawasaki 
Steel Corp., Japan. 

Nippon Kokan KK, Japan National Steel Corp. 



37.1 



2,500 



1981 



309 1981 



1981 



14.4 


1981 


1,770 


1981 


12.5 


1982 


326.5 


1982 



Companies were part of Amcord Inc.. which became 
a subsidiary of Gifford-Hill and Co. Inc. in 1979. 

Phelps Dodge sold its interest in Consolidated 
Aluminum in installments payable over 5 yr. 

Bought 22 pet; now owns 28 pet. 



Canada Wire and Cable is subsidiary of Aloranda 
Mines, which is partly held by Brascan Ltd. of 
Canada. 

Increased stock holdings from 8.4 to 25.1 pet. Mr. 
Clore is a British financier who resides in 
Switzerland. 

Consolidated Gold Fields purchased 22.4 pet of 
Newmont Mining in 1981. It owned 25 pet in 
1984. Consolidated is partly owned by Anglo- 
American of The Republic of South Africa. 

Elf Aquitaine is controlled by the French Govern- 
ment and is primarily a petroleum company. Price 
quoted covers 63.1 pet of the company's stock 
purchased from U.S. holdings. Elf Aquitaine pur- 
chased remaining 36.9 pet from the Canadian 
Development Corp., primarily a natural resources 
holding company controlled by the Canadian 
Government with mineral assets held by Texasgulf 
in Canada. 



260 1981 Elkem is Norway's 3d largest industrial concern. 

The acquisition made Elkem the world's largest 
ferroalloy producer. 

Acquired 80 pet of Florida Wire and Cable. 

British Petroleum retained a holding in Sohio prior 
to 1970. 

None. 



Purchased through Canadian subsidiary of LaFarge. 
since reorganized to directly report to LaFarge. 
General Portland is the largest U.S. cement 
producer. 

NA 1982 Martin Marietta actively divesting cement properties 



NA 1983 Buyers are U.S. subsidiaries of Japanese com- 

panies. Godoe USA bought 50 pet of Co. North 
American. Inorgchem. a subsidiary of Mitsui & Co. 
bought 10 pet. 

75 1983 Known as Pinto Valley Copper Corp. 

NA 1983 Acquisition increased Sunshine's holding in the area 

from 1.387 to 12.751 acres. HMC had previously 
purchased Kennecott's Tintic Division with the 
backing of Sunshine. Sunshine was bought in part 
by the Mediterranean Investors Group in 1981. 

NA 1983 Texasgulf Chemicals is subsidiary of Elf Aquitaine of 

France. Lease tracts bought from Philadelphia 
Quartz Corp. 

ARCO divested Anaconda aluminum assets pur- 
chased in 1976. 

Purchase joint venture of Amoco Production Com- 
pany (49 pet) and PPG Industries Inc. (51 pet). 

General Electric had purchased Utah International 
(Ul) in 1976. At the time the divestiture was the 
largest of all such transactions. 70 pet of Ul pur- 
chase price was for coal mining properties in 
Australia. 

110 1984 Formerly the Fontana. CA. facilities of Kaiser Steel 

Corp. 



292 1984 Bought 50 pet of National Steel, a subsidiary of 

National Intergroup. National Steel was 7th ranked 
U.S. steelmaker in 1984 



600- 
1,000 


1984 


NA 


1984 


2,400 


1984 



NA Not available. 



21 



Table A-1 2. —Foreign investment in the U.S. minerals industry— chronological listing of major acquisitions since 1980— Continued 



Purchase 



Buyer and country 



Acquisition 



Price, 10 6 $ 



Year 



Comments 



Nisshin Steel Co. Ltd., Japan 



Norcen Energy Resources Ltd. 
Canada. 



Societe Generale de Belgique, 
Belgium. 

Blue Circle Industries PLC, 
United Kingdom. 



Wheeling-Pittsburgh 



M.A. Hanna Co 

Jersey Miniere Zinc Co. 
Atlantic Cement Co. . . . 



NA 


July 1982 
May 1984 


NA 


1984 


145 


1985 



Comalco Pty. Ltd., Australia Martin Marietta aluminum assets . 



Echo Bay Mines Ltd., Canada 



Copper Range . 



Englehard Corp., United States . . . Freeport Kaolin 



Kemira Oy, Finland 



British Steel Corp., 
United Kingdom. 



Titanium dioxide plant owned 
by American Cyanimid in 
Savannah, GA. 

Tuscaloosa steel plant 



MIM Holdings, Ltd., Australia ASARCO Incorporated 



NA 1984 In the 1st direct investment by any foreign company 

in a major U.S. steel company, Nisshin bought a 
10 pet interest in Wheeling-Pittsburgh (W-P) 
through purchase of a new issue of common 
stock; W-P bought a smaller share in Nisshin. 

Increased share from 8.8 to 28 pet. Hanna accounts 
for about 10 pet of U.S. iron ore capacity and is 
the only domestic integrated nickel producer. 

Bought Gulf + Western's 60 pet holding through 
U.S. subsidiary Union Zinc Co. 

Sold by Newmont Mining, a foreign-held company. 



400 1985 Rio Tinto Zinc of the United Kingdom is a substan- 

tial shareholder of CRA Ltd. of Australia, which 
controls Comalco, that country's leading aluminum 
producer. Comalco's U.S. aluminum subsidiary 
was redesignated Commonwealth Aluminum Corp. 

55 1985 Copper Range was sold by Louisiana Land and Ex- 

ploration, which had acquired the copper com- 
pany in 1977. Echo Bay was a subsidiary of IU In- 
ternational Corp. of the United States until IU 
spun off its controlling interest in Echo Bay to 
common shareholders. 

100 1985 29 pet of Englehard is owned by Charter Con- 

solidated of the U.K., which is controlled by 
Anglo-American of the Republic of South Africa. 

100 1985 NL Industries, a U.S. concern, had attempted to ac- 

quire plant but had been opposed by the Federal 
Trade Commission. 

NA 1985 Acquisition of Tuscaloosa secures a market for 

British Steel slab exports. British Steel will supply 
the 250,000 short tons of slab the mill will use 
each year. 

NA 1985 MIM increased its ASARCO holdings to 32.4 pet; 

ASARCO owns 44 pet of MIM. 



NA Not available. 



22 



Table A-13. — Selected joint ventures in domestic mineral projects that include foreign partners 



Venture and participants 



Share, 
pet 



Country 



Date 



Commodity and comments 



ALS Metals Co.: 

Allegheny Ludlum Steel Corp NA 

Sumitomo Metal Corp NA 

Aurora property: 
Electra Northwestern Resources Ltd. NA 

Centennial Minerals Ltd NA 

Bingham North ore shoot extension 
(Kennecott) and Carr Fork Mine 
(Anaconda): 

Kennecott 96 

Anaconda 4 



Buckhorn deposit: 

Cominco American Inc NA 

Pembina International Corp NA 

California Steel Corp.: 

Cia. Vale do Rio Doce (CVRD) 25 

Kawasaki Steel Corp 25 

Local investors 50 

Cannon Mine: 

Asamera Minerals Inc 51 

Breakwater Resources Ltd 49 

Chino Mines: 

Mitsubishi Metal Corp 33 

Kennecott 67 

Craig Co. prospect: 
Hampton Gold Mining Areas PLC . . NA 

Marathon Gold Corp NA 

Centennial Gold Corp NA 

Elwood Uddeholm Steel Co.: 

Elwood City Forge 80 

Uddeholm Tooling 20 

Greens Creek: 

Noranda Mines 33.8 

Anaconda ■. . . 33.8 

Texas Gas & Exploration Co 12.3 

Bristol Bay Resources 11.2 

Exalas Resources Corp 8.9 

International Light Metals Corp.: 

Nippon Kokan K.K 40 

Martin Marietta 60 



Iron ore prospect: 

KORF Engineering 1 

U.S. Steel 

State of Minnesota 

Leadville Mine: 

ASARCO Incorporated 

Resurrection Mining 

Magmont Mine: 

Cominco American 

Dresser Industries 

McDermitt Mine: 

Placer U.S. Inc 

Stering Mineral Venture 

North American Brine Resources: 

Beard Oil Co 

Godoe USA Inc 

Inorgchem Development Inc 

Phosphate rock mine near Lee Creek: 

Agrico Chemicals Co.-Eni Group 2 . . 

Agrico Chemicals Co.-Cie Francaise 
de L' Azote Cofaz. 2 
Pine Level project: 

Noranda Mines 

New Jersey Zinc 

Pinson Mining: 

Lacana Mining Corp 

Several U.S. Companies 

Red Dog Deposit: 

Cominco Ltd 

NANA Regional Corp 

Santa Fe prospect: 

Westerly Mine Ltd 

Lacana Mining Inc 

Titanium production agreement: 

RMI Co 

Kobe Steel Ltd 



Undesignated: 

BRGM-COFREMMI 
AMAX Inc 



NA 
NA 
NA 

50 
50 

NA 
NA 

51 
49 

40 
50 
10 

21.6 
19.0 



51 
49 



NA 
NA 



NA 
NA 



NA 
NA 



NA 
NA 



NA 
NA 



Barranca Corp. Ltd NA 

Little Square Mining Co NA 



United States 
Japan 



Canada . 
..do. .. 



United States 


. do 


. .do 


. .do 


Brazil 


Japan 


United States 


Canada 


United States 


Japan 


United States 


United Kingdom 

United States 


Canada 


United States 


Sweden 


United States 


. .do 


..do 

. .do 


. .do 


Japan 


United States 



1 983 Titanium — Preforms for the products are to be obtained from Sumitomo 
and finished by ALS using Allegheny Ludlum steelmaking 
equipment. 

NA Gold. 



1 985 Copper — Joint operating agreement for the 2 adjacent properties. 
Kennecott (subsidiary of British Petroleum Co.) would receive 96 
pet of the ore output. Subject to approval by U.S. Justice 
Department. 

1983 Gold, silver— Cominco American is U.S. subsidiary of Cominco Ltd. 

of Canada. 

Steel— CVRD and Kawasaki are part owners of the Tubarao Steel 

1984 plant in Brazil, which will supply most of California Steel's im- 
ported slab. Formerly the Fontana, CA. facilities of Kaiser 
Aluminum. 

NA Gold. 
NA Copper. 

NA Gold and rare earths, monazite. 

1985 Steel — Uddeholm Tooling is subsidiary of AB Tresor of Sweden. 



NA Silver, lead, copper, gold— Noranda Mines is held ultimately by 
Brascan Ltd. of Canada. 



Fed. Rep. of Germany 

UnitecTStates 

. .do 



United States . 
See comments 



v 



985 Titanium, aluminum — Nippon is reportedly investing $45 million; ex- 
pected to supply traditional U.S. markets and develop new Asian 
and European markets. Subject to corporate and government 

review. 



United States 
. .do 



do. 
do. 

do. 
do. 
do. 



} 



985 Iron and steel — Involves use of State land 

NA 
NA 
NA 



Lead, zinc — Resurrection owned by Newmont. which is held in part 
by Anglo-American of the Republic of South Africa. 

Lead— Cominco is ultimately owned by Canadian Pacific Ltd. 



NA 



United States and Italy 
United States and 
France. 



United States 
..do 



Canada 

United States 



Canada 

United States 



\ 1981 
^ 1975 

} 



Canada . 
. .do. 



United States 
Japan 



France 

United States 



Canada 

United States 



Mercury, gold— Placer U.S. is ultimately owned by Brascan Ltd. of 
Canada. 

Iodine — Inorgchem is U.S. subsidiary of Mitsui & Co.. Japan; Godoe is 
US subsidiary of Harough United Resources Industry Co.. Japan. 



Phosphate rock — The mine's planned capacity represents about 6 
pet of U.S. marketable phosphate rock production (1981). 



Phosphate rock— Noranda (Canada) and New Jersey Zinc (Belgium) 
held by foreign companies. 



NA Gold— Lacana is partly held by Brascan Ltd. of Canada. 

1985 Zinc, lead, silver — Production planned to commence in 1988: con- 
centrates not expected to be processed in United States: Cominco 
will be operator. 

NA Gold. 



1983 Titanium— RMI is 2d largest U.S. integrated titanium producer. Kobe 
will process commercially pure titanium produced by RMI at 
Ashtabula and Niles. OH. for distribution in U.S. markets. 

NA Nickel— BRGM. Bureau de Recherches Geologiques et Minieres: 
COFREMMI. Compagnie Francaise d'Enterprises Minieres 
Metallurgiquese et d'lnvestissements. 

NA Gold. 



NA Not available. '70 pet owned by the Government of Kuwait. Partnership. 



23 



APPENDIX B.— DATA SOURCES AND QUALIFICATIONS 



Comprehensive data on foreign direct investment (i.e., 
foreign investment of 10 pet or more by a single foreign per- 
son or enterprise in a U.S. business firm) in all domestic 
business enterprises throughout the entire U.S. economy 
was collected by the Commerce Department's Bureau of 
Economic Analysis (BEA) in a benchmark statistical survey 
in 1980. The mandatory survey covered virtually the en- 
tire foreign direct investment universe. Aggregated data 
from the survey were published in 1983 in a report enti- 
tled "Foreign Direct Investment in the United States, 
1980." While the published data did not reveal the owner- 
ship status of individual firms, they did identify the degree 
of foreign investment at the "industry" level. 

Subsequent to the comprehensive survey, BEA has used 
annual sample surveys to update its foreign investment 
data base. Data from both the published benchmark survey 
and the subsequent sample surveys have been used in this 
report to develop a statistical profile of the extent of foreign 
direct investment in the U.S. minerals industry (see table 
A-l in appendix A). 

Despite the comprehensive coverage of the BEA foreign 
direct investment survey, all individual company data were 
considered proprietary, thereby limiting their utility to cer- 
tain types of analysis. Hence, in order to develop more 
detailed information on foreign investment in the minerals 
sector of the economy by individual commodity industry 
(e.g., steel, aluminum, cement, etc.), data were extracted 
from numerous published sources such as the Bureau of 
Mines Minerals Yearbook, the Bureau's bimonthly 
Minerals and Materials publication, corporate annual 
reports, and various corporate directories. Such sources 
typically provide publicly available information on parent- 
affiliate relationships, percent of outstanding stock held, 



and commodities or products produced. Through such 
sources, ownership chains were traced back to the ultimate 
beneficial foreign owner (see table A-2 in appendix A) and 
measures of the proportional share of foreign control of U.S. 
capacity were developed for several mineral commodity in- 
dustries (see tables A-3 through A- 11 in appendix A). 

The limitations of data developed from public sources 
on individual owners must be stressed. While considerable 
research effort was expended to develop this information, 
it does not purport to represent complete coverage of all 
foreign-owned firms in the domestic minerals industry (SIC 
groups 10, 14, 32, and 33) as much of this information was 
not available. Coverage is believed to be more complete for 
the SIC groups 10 and 33 and considerably less so for SIC 
groups 14 and 32. 

In addition, the highly dynamic nature of ownership pat- 
terns in the minerals industry must also be stressed. 
Because individual parent-affiliate relationships and the 
exact percentage of outstanding stock held are constantly 
changing, the detailed data that are presented in this report 
are particularly perishable. 

One further qualification that should be noted in inter- 
preting the data in this report concerns the management 
style of many foreign owners of U.S. affiliates. Very often, 
in absentia overseas investors will grant their U.S. ex- 
ecutives considerably more freedom to run their businesses 
than would domestic corporate owners. This is due to ob- 
vious geographic, linguistic, and cultural differences as well 
as the presumed superior knowledge of the local executive 
concerning his or her own domestic market. Thus, the in- 
fluence of foreign investors on U.S. business operations is 
often not as significant as might be inferred from a listing 
of percentage of stock owned. 



150S7 



24 



APPENDIX C— GLOSSARY 



Affiliate. —A business enterprise in which at least 10 pet 
or more of its voting securities are directly or indirectly 
owned or controlled by a person of another country. 

Business enterprise.— Any organization, association, 
branch, or venture that exists for profitmaking purposes 
or to otherwise secure economic advantage. 

Foreign direct investment in the United States. —Owner- 
ship or control, directly or indirectly by a foreign person 
or entity of 10 pet or more of the voting securities of an in- 
corporated U.S. business enterprise or an equivalent in- 
terest in an unincorporated U.S. business enterprise. 1 

Metal mining group.— Includes establishments primar- 
ily engaged in mining, developing, or exploring for metallic 
minerals (ores). 

Nonmetallic mining group. —Includes establishments 
primarily engaged in mining or quarrying, developing 
mines, or exploring for nonmetallic minerals, except fuels. 

Person.— Any individual, branch, partnership, associa- 
tion, associated group, estate, trust, corporation, or other 
organization (whether or not organized under the laws of 
any State), and any government (including a foreign govern- 
ment, the U.S. Government, a State or local government, 
and any agency, corporation, financial institution, or other 
entity or instrumentality thereof, including a government- 
sponsored agency). 

Portfolio investment— Ownership of less than 10 pet of 
the voting securities of a U.S. company. 2 



'When used in this report, terms such as foreign investment, foreign owner- 
ship, and foreign-owned refer specifically to foreign direct investment (vis- 
a-vis portfolio investment), unless otherwise stated. 

2 The distinction between foreign direct investment and portfolio invest- 
ment is made in order to establish the point at which the foreign investor 
gains a degree of control sufficient to influence investment, production, 
marketing, or other major decisions affecting the firm. Ownership of less 
than 10 pet of a company's stock is considered merely a financial hedge in 
which case the shareholder's principal gain is expected to come through 
dividends and/or sale of the stock at a later date. Portfolio investment is 
not deemed to carry any influence, although it may signal the future inten- 
tions of the investor. To monitor potential takeovers, the U.S. Securities 
and Exchange Commission requires that investors report purchases of 5 pet 
or more of the stock in a company or purchases of stock that bring the total 
shares of a single holder to 5 pet or more of the outstanding stock in a 
company. 



Primary metal group— Includes establishments engaged 
in the smelting and refining of ferrous and nonferrous 
metals from ores, pig or scrap. It also includes those 
establishments engaged in the rolling, drawing and alloy- 
ing of ferrous and nonferrous metals and the manufacture 
of castings, nails, spikes and insulated wire and cable. 

Stone, clay, and glass products group.— Includes 
establishments engaged in manufacturing flat glass and 
other glass products, cement, structural clay products, pot- 
tery, concrete and gypsum products, cut stone, abrasive and 
asbestos products, etc. from materials extracted from the 
earth in the form of stone, clay and sand. 

Ultimate beneficial owner. —That person, proceeding up 
the ownership chain beginning with and including the 
foreign parent, that is not more than 50 pet owned or con- 
trolled by another person. (A person who creates a trust, 
proxy, power of attorney, arrangement, or device with the 
purpose or effect of divesting such owner of the ownership 
of an equity interest as part of a plan or scheme to avoid 
reporting information, is deemed to be the owner of the 
equity interest). 

U.S. affiliate.— An affiliate in which a foreign person has 
a direct investment and that is located in the United States. 

U.S. corporation.— A business enterprise incorporated 
in the United States. 

U.S. minerals industry.— Refers collectively to business 
establishments classified into one or more of the following 
four SIC groups: 

Industry Major group 

Metal mining 10 

Nonmetallic minerals, except fuels 14 

Stone, clay, glass, and cement products 32 

Primary metals 33 







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